“For emerging markets, large currency moves this year detracted from the performance of international indexes, a sharp contrast to the persistent rally in 2017 amidst a backdrop of little volatility,” according to BlackRock. “The Federal Reserve’s interest rate hikes in the U.S. have contributed to the tightening of global financial conditions. This, coupled with rising trade tensions have influenced a broad unloading of emerging market currencies.”

The strong dollar, political volatility in Brazil, trade wars with China and chaos in Turkey are among the factors punishing emerging markets assets this year.

“In short, investors looking abroad need to consider the impact of currencies in the international portion of their investment portfolios across both stocks and bonds,” according to BlackRock.

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