Asian Financial Crisis: Overview of Forex Trading Effects

The Asian financial crisis of 1997 was one of the most devastating global events in recent history, and its effects are still felt throughout the world today. The crisis began with a sudden devaluation of Asian currencies, particularly the Thai baht and the Korean won, causing massive capital flight out of the region. This, in turn, led to a weakened stock market, financial instability, and strict capital controls, while currencies like the won and baht depreciated greatly against the U.S. dollar, affecting regional trade and the foreign exchange (forex) market. Though the worst of the crisis has subsided, it remains a cautionary tale of the geopolitical risks of investing in emerging markets.

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