Developed countries' currencies solely driven by politics: Strategist - CNBC

The G10 currencies are the U.S. dollar, the euro, the pound, the yen, the Swedish krona, the Norwegian krone, the Australian dollar, the New Zealand dollar, the Swiss franc and the Canadian dollar.

A number of these currencies have seen a lot of volatility since the start of the year owing to political uncertainties in their respective countries or on a global level. The biggest events this year have been the U.K.'s vote to leave the European Union and the U.S. presidential elections. While sterling is down more than 16 percent since the Brexit vote on June 23, the euro has been on its worst losing streak since the currency arrived in 1999.

The dollar, meanwhile, has been seeing some strength, rising to a 14-year high against a basket of currencies on the growing perception that the economic policies of U.S. President-elect Donald Trump will push up consumer prices. While traders are growing more bullish on the dollar, HSBC's Bunning warned that it is not great for emerging market currencies.

"You need to be selective in terms of your currency choices. I don't think it's a dollar bull run against everything but I do think if you look at the outlook for emerging market currencies, particularly the high-yield currencies at the moment, it is very hard to have a positive currency view."

Soaring dollar has hit assets across emerging markets, especially after Federal Reserve chief Janet Yellen said a rate hike could be "relatively soon."