The Thai baht came under attack first during the 1997 Asian financial crisis.
Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to float after intense pressure on the currency. The baht then depreciated sharply, exposing weaknesses linked to foreign-currency borrowing, property speculation, and fragile financial institutions.
The turmoil spread across East and Southeast Asia. Indonesia’s rupiah, South Korea’s won, and Malaysia’s ringgit also suffered major pressure, while stock markets fell and companies struggled to repay debts denominated in U.S. dollars.
The crisis was not simply a stock-market event. Currency collapses, banking problems, corporate debt, and investor withdrawals reinforced one another. The International Monetary Fund organized assistance programs for several affected economies, including Thailand, Indonesia, and South Korea.