KEY POINTS
  • "Now that the Fed hikes are off the table for a little bit, and the Fed can afford to be patient, EM funding conditions won't be as tight as it was before," said Mary Nicola, a G-10 foreign exchange and Asian fixed income strategist at Eastspring Investments.
  • Nicola said that emerging markets are "really cheap" now.
  • In particular, she recommended currencies of countries with strong fundamentals, such as the Indonesian rupiah, Turkish lira, and the Russian ruble.

With the U.S. Federal Reserve pledging to be "patient" in future rate hikes, emerging markets should do better this year, and may in fact even have "a decent rally," one strategist told CNBC on Monday.

Last year, economic troubles in Argentina and Turkey, as well as the Fed tightening monetary policy, had caused a selloff in several emerging market currencies. Some emerging market stock indexes also saw steep declines. Rising interest rates stateside make it harder for emerging economies to service their U.S-dollar debt.