Which 1997 exchange-rate crisis began in Thailand before spreading across Asian financial markets?

The Asian financial crisis began in Thailand and spread across Asian financial markets in 1997.

Thailand abandoned its long-standing baht peg to the U.S. dollar on July 2, 1997, after authorities could no longer defend the currency against intense selling pressure. The baht then depreciated sharply, exposing companies and banks that had borrowed heavily in foreign currencies.

Investor confidence weakened throughout the region. Indonesia, South Korea, and several other economies experienced currency collapses, banking problems, recession, and severe stock-market declines. International capital flowed out rapidly, making it difficult for borrowers to refinance foreign-currency debts.

The International Monetary Fund organized rescue programs for several affected countries, including Thailand, Indonesia, and South Korea. The crisis was not simply a stock-market event: currency pegs, external debt, weak financial supervision, and property-market excesses all played important roles.