Asian Financial Crisis: Understanding Forex Trading Impact

5 min read

The Asian Financial Crisis of 1997 was a major financial event that had a major impact on stock market indices, currency exchange rates, and other financial and economic indicators. The root cause of the crisis was the sudden devaluation of the Thai baht, which rippled through the currencies of many other East Asian countries. This led to a number of knock-on effects, particularly in the foreign exchange markets, as investors fled from the affected currencies and the overall risk sentiment deteriorated. The Asian Financial Crisis ultimately led to a global recession, with GDP growth slowing in both developed and developing economies around the world.