Morgan Stanley: Stay short on emerging market currencies

Emerging market equities are in a bear market as of today. So, right now, everyone seems to be talking about contagion in the emerging markets. As the day began, the US dollar was posting gains against most currencies, emerging market and developed market alike. And the MSCI Emerging Markets Index was off 1.6%, bringing it to six sessions on the trot. There's no reason for the entire EM complex to get hit like this unless you talk of contagion.
What are traders saying?
So how does contagion work? Let's see what EM analysts are saying.

According to Morgan Stanley, this month won't provide relief to EM. James Lord, Morgan Stanley's global head of EM fixed income strategy said in a note to investors they recommend staying short currencies from Brazil, Indonesia, India, Mexico, the Philippin...

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