Last week, the Thai military usurped control of Thailand’s government while the Prime Minister was in New York attending a United Nations conference. Thailand’s currency, the Baht, immediately lost over 1% of its trade-weighted value, as analysts feared the military coup would harm Thailand’s economy. In the following week, the Baht retraced almost all of its losses, as the markets reacted positively to promises by the leader of the coup, that democracy would be returned to Thailand as soon as the Constitution could be rewritten. This episode was the most significant interruption to the Thai Baht in over a year, during which time the currency appreciated over 10% against the USD. The Globe and Mail reports:

Many analysts agree that King Bhumibol Adulyadej’s support of the coup and any timeline for fresh elections to restore democratic government will be key in determining when, or if, the Baht will recover.

Read More: Thai Baht hits currency markets