Emerging market currencies are sharply declining

Trump's latest measures to deepen protectionism have triggered further sell-offs in emerging markets.
The currencies and indices of emerging markets are turning to their biggest losses since September 2015. The Hungarian forint has fallen to a historic bottom after the country's central bank has confirmed its not particularly aggressive monetary policy.
Yuan fell on Thursday for the tenth consecutive day against the dollar, which was his longest series of declines since March of 2014.
A cheap yuan is part of China's policy to resist US blows in the ever-worsening trade war between the two super-economic powers.
Chinese yuan is cheaper also because the central bank of China refrains from raising interest rates after the Fed raised interest rates by 25 basis points.

BofAML: There's no way we can see expensive yen and expensive developing currencies

A strange situation is present in the currency markets at the moment, according to experts from the US investment Bank of America Merrill Lynch. Investors are long in currencies in emerging markets as well as in the yen! According to analysts of the financial institution, this situation can not last long.
The bank expects the yen to fall cheaper compared to other major currencies and the developing currencis situation to become mixed later this year when the Fed continued to raise interest rates. The tax reform of the new president, is also expected to have a positive impact on the yen against the dollar.
With a potential correction for the US markets, which is considered unlikely at this stage, the yen is likely to appreciate, and emerging market currencies to become cheaper, the financial institution said. Even under this scenario, however, we will see a shift in the direction of trade in the yen accepted as an "island of salvation" and developing currencies.