The Thai baht was the first major currency attacked during the 1997 Asian financial crisis.
Thailand abandoned its fixed exchange-rate policy on July 2, 1997, allowing the baht to float after authorities could no longer defend its peg to the U.S. dollar. The currency then depreciated sharply, exposing weaknesses in Thailand’s heavily indebted financial and property sectors.
The turmoil spread across East and Southeast Asia. Indonesia’s rupiah, South Korea’s won, Malaysia’s ringgit, and other currencies came under pressure. Stock markets fell, companies struggled with foreign-currency debt, and several countries required international financial assistance.
The crisis was not simply a stock-market event. It combined exchange-rate pressure, high private-sector borrowing, weak financial regulation, property-market excesses, and rapid movements of international capital. The International Monetary Fund arranged major support programs for affected economies.