The baht should move in line with market forces but the central bank is ready to act on any excessive volatility in the currency, the central bank governor said on Wednesday.
The baht is not as volatile as several other regional currencies, Bank of Thailand governor Veerathai Santiprabhob told a news conference, as the unit is hovering near 21-month highs against the dollar.
A weaker dollar has caused Southeast Asian currencies to appreciate, he added.
The baht traded at 34.29 per dollar on Wednesday. It has strengthened by 4.4% against the greenback this year, becoming the best-performing currency in Southeast Asia.