For example, Brazil, India, South Africa have all reduced their current-account deficits in the past five years while Thailand has turned it into a surplus of more than 10% of GDP. The reduction has helped diminish these countries’ reliance on foreign investment to reduce the gap.

Meanwhile, stable inflation rates and strong growth continue to make some emerging market assets attractive, especially for those seeking to diversify away from developed markets that are still producing historically low yields.

But emerging-market currencies as a whole are “massively undervalued” for buyers who have a one- or two-year horizon, Jean-Charles Sambor, the deputy head of emerging-market fixed income at BNP Paribas Asset Management, told Bloomberg. “There could be some volatility in the next couple of weeks. Overall, we see that as a buying opportunity.”

For more information on the developing economies, visit our emerging markets category.