Thailand's attempt to impose curbs on foreign investment may have damaged its credibility and those of other other Asian markets, analysts said.
"Analysts are saying that Thai officials acted too fast," CNBC Asia's Christine Tan said on "Power Lunch." "It was a rash decision by the newly military-installed government--and some were stunned at how quickly the central bank changed its mind, even questioning whether damage has been done and whether the government lost its credibility."
The Thai stock market plunged nearly 15% on Tuesday after the government attempted to halt the Thai currency's rise against the dollar by imposing controls on foreign investment. The sell-off, which rippled through other Asian markets, prompted Thai officials to hastily amend the new rule and say it wouldn't apply to stock transactions.
"Most agree markets will recover tomorrow, but not to where they were because risks have clearly changed," Tan said.
Other experts agreed. Axel Merk, fund manager of the Merk Hard Currency Fund, said Thailand's move should be a reminder that Asian currencies are risky and aren't meant for average investors.
"The Thai government says the the U.S. dollar is falling too quickly and the Thai currency is appreciating too much," Merk said on "Power Lunch."
"Much of Asia has the same problem in that they are hugely dependent on exports to American consumer and the U.S. economy is slowing down. On top of that, there is upward pressure on their currencies and it's just too much for them to handle. They tried to do something about it, and it backfired."