suffered fresh losses and capital outflows, triggering a warning from Fitch that weak policy management could affect credit ratings for it and for India
Brazil will offer $4 billion on the spot market on Thursday, boosting its efforts to curb the real's losses. The currency has tumbled to near five-year lows despite some $30 billion in central bank interventions via the swap markets.
The rand slumped to a new four-year low
MORE EMERGING MARKETS HIT
ING's Bakkum said bearishness had now extended beyond India, South Africa, Turkey, Indonesia and Brazil - markets that were hit first because of their reliance on foreign capital.
"The five that were in focus so far are obvious victims as they need external capital to fund themselves but there are also worries about economic growth," he said.
"Countries such as Thailand and Mexico that had strong capital inflows and credit growth are also looking vulnerable as their growth expectations were based on assumptions of strong capital flows."
Data from Malaysia confirmed the worsening fundamentals of emerging markets, showing an economic slowdown and an evaporating current account surplus. That pushed the ringgit to three-year lows.
The Thai baht too fell to three-year lows, forcing the central bank to reassure markets it would act if needed, while the Korean won fell to two-week lows.
Selling has also hit the Mexican peso which lost 2 percent on Wednesday while Russia's rouble sank to almost a four-year low versus a euro-dollar basket and data showed central bank dollar sales of $3.7 billion in August.
Analysts are reluctant to call the end of the selloff. Of the trillions of dollars that flooded into emerging markets over the past decade, they note that very little has actually exited, indicating scope for more huge outflows.
Data from Lipper, a Thomson Reuters company, shows that in the three months to end-July, global emerging equity funds it tracks saw net outflows of about $8 billion. That equates to just under 2 percent of total assets under management.
Funds dedicated to emerging dollar debt have shed a net $1 billion this year compared to $124 billion in assets, it says.
"In the medium and long term we