Emerging markets' shine dims as capital flight nudges $1tn in a year

Anticipated interest rate rises in US and UK will intensify pressure on developing economies, particularly those that borrowed cheap dollars after 2008 crash

There has been no shortage of disturbing trends in Asian foreign exchange markets this year, even before China shocked traders last week with its unilateral devaluation of the yuan. The Malaysian ringgit and Indonesian rupiah have been in freefall for months, and the Thai baht was haemorrhaging support long before the Bangkok shrine bombing.

Figures showing that emerging markets have suffered a near-$1tn (640bn) outflow of funds over the last year give another indication that countries billed as the stars of the post-crash economy are now waning.

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