Have EM currency investors forgotten about the Fed?

Emerging market (EM) currencies have decoupled from broader movements in the US dollar in recent months despite a growing sense that the Fed will hike rates again before year-end. A realisation that the Fed will tighten further than is currently anticipated in 2017 may cause some greater volatility in EM currencies in the months ahead. But we doubt that Fed policy will trigger an EM-wide sell-off. 

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