The MSCI Emerging Markets currency index has risen from 1,850 in June to nearly 1,940.

The driving force is the flip side of the dollar. A deteriorating US fiscal position, high real interest rates putting pressure on debt, and a quest for diversification are pushing capital out of the United States—and emerging markets with high real interest rates are the natural destination.

It is not due to domestic merit, but rather global osmosis and a wide interest rate differential.