In recent weeks, emerging market (EM) currencies have been falling around the world. Morgan Stanley's index of EM currencies has fallen 8.51 percent since April as the US dollar has risen and capital has flowed to more developed markets. 

This round of currency depreciation in emerging markets started when the Turkish Lira began falling in August. However, Turkey is not the only emerging market facing pressure from currency depreciation. Experts predicted more emerging markets would be hit by the same problem. 

"We list two countries probably, at the moment, facing large pressure. One is Indonesia and the other is India. Both of the two central banks recently released measures to contain the currency depreciation. But the effects are quite limited as we see both Rupee and Rupiah approaching 20 year's low," said Jimmy Zhu, chief strategist of Fullerton Markets.

Despite the currency disorder in these markets, the Chinese currency is still performing strongly against the US dollar as the Chinese central bank last week re-introduced its counter-cyclical adjustments to how it sets the yuan's daily value. But the yuan's strong performance so far does not mean China can entirely escape the problem. 

"The direct impact will be on the Chinese overseas assets because if you have an asset in those emerging markets, your asset value will be revalued according to currencies. But for China, the total assets we hold in those emerging markets are limited so the direct impact will be limited. In that impact will be the contagion of market confidence, so if all the emerging markets are facing the currency downward pressure facing some stock markets falling down, the Chinese market confidence will also be affected," said Li Liuyang, chief analyst of China Merchants Bank.

Currency depreciation in emerging markets may continue at least throughout September. The markets expect the US Federal Reserve to raise interest rates once again this month and that will only add more pressure to the capital outflows from emerging markets.