Emerging market currencies at their most undervalued ever

A record number of investors think emerging market currencies are undervalued, Bank of America Merrill Lynch's October fund manager survey found on Tuesday. Crumbling under pressure from the strong dollar, along with crises in Turkey and Argentina, developing market currencies have cratered this year.
More recently they have been hit by a sharp stocks selloff, leaving MSCI's emerging currency index down 4.5 percent on the year and 7.4 percent off March peaks. A net 51 percent of investors surveyed by BAML said they thought emerging market currencies are undervalued - the cheapest valuation since the survey began. More than 20 percent of investors said the dollar was significantly overvalued, meanwhile, the second highest US dollar valuation reading.