The dollar, plus the collapsing of Thai baht currency.

The Asian financial crisis had
made many changes in Asia countries. Even though, the crisis was first started
in Thailand, it furthermore had spread and affected all over southeast Asia. In
southeast Asia countries, Thailand and Indonesia were highly affected followed
by Philippines, Malaysia, Singapore and other countries in the area which are suffered
less.

In the period of
the crisis, Thailand baht was hit by speculative attacks on 14 &15, May
1997 which eventually forced Thai government to float the baht caused by
lacking support of USD-baht from foreign reserves. This led to Thailand’s
booming economy and brought huge discharges in Finance, real estate and
constructions causing the number of unemployment risen very quickly. Great amount
of workers had returned back to their villages in the countryside and more than
600,000 workers from other countries had to go back to their homeland. The baht
lost more than half of its value and later on the Thai stock market dropped 75%.
Moreover, even the Thai largest finance company had collapsed in 1998.

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            Indonesia besides was the second most
affected while then Korea in the northeast Asia was the third. Indonesia, in
the southeast started changes from the crisis in 1997 by large amount of Indonesian
corporations borrowing in U.S dollar, plus the collapsing of Thai baht
currency. Indonesia then widened the rupiah from 8% to 12%. The Rupiah then
came under attacks in August causing the currency value dropped further and hit
the historic low in September which led to sharp price increased. Companies
that had borrowed money in U.S dollar faced higher cost and exchanging by
buying dollar through selling rupiah. In February, 1998, President Suharto sacked
Bank Indonesia Governor but then became insufficient. This brought the wake the
of widespread rioting of people burning houses, vehicles and causing 500 deaths
in Jakarta alone. The pressure from the people had forced the president to
resign from his place in May, 1998 after 30 years in power.