A mass exodus from the emerging markets occurred on a similar premise during the so-called taper tantrum in mid-2013 after the Fed hinted at tapering the bond purchasing program.

Seetharamdoo, though, pointed out that while other assets, like bonds have stabilized after the taper tantrum, emerging market currencies have continued to sell off for over two years.

“Most EM currencies now appear undervalued against the dollar, which is quite different to the situation that prevailed two years ago,” David Rees, senior markets economist at Capital Economics, said in a note. “While we think that Fed lift-off will probably lead to some further dollar strength in the months ahead, on the whole we expect additional depreciation of EM currencies to be limited.”

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Max Chen contributed to this article.