August 1982: Latin American Debt Crisis
The DXY hit 120 — its highest level in decades. Paul Volcker had jacked US rates to 20% to break inflation. That crushed the dollar cost of servicing debt fo...
July 1997: Asian Financial Crisis
The DXY spiked to 100 as the Fed held rates steady while Asia's export-driven economies overheated. Thailand, Indonesia, South Korea — all had borrowed heavily in dollars during the prior boom.
Thailand's baht devaluation on July 2, 1997, triggered contagion across the region. Indonesia's rupiah fell 80%. South Korea required an IMF bailout. GDP contractions ranged from -5% to -13% across the affected economies.
Same structure. Different decade. Same outcome.
The DXY spiked to 100 as the Fed held rates steady while Asia's export-driven economies overheated. Thailand, Indonesia, South Korea — all had borrowed heavily in dollars during the prior boom.
Thailand's baht devaluation on July 2, 1997, triggered contagion across the region. Indonesia's rupiah fell 80%. South Korea required an IMF bailout. GDP contractions ranged from -5% to -13% across the affected economies.
Same structure. Different decade. Same outcome.
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