The Bank of Thailand (BoT) is closely monitoring the baht and will ensure the currency is not too volatile, an assistant governor said on Thursday.
The central bank will ensure the currency aligns with economic fundamentals, Sakkapop Panyanukul told reporters.
"The central bank has been closely monitored the baht's movement since last night," Mr Sakkapop said, adding the currency had absorbed the news about the United States Federal Reserve (Fed).
The baht weakened against the dollar in early trade on Thursday as the dollar strengthened broadly after the Fed signalled a slower pace of rate cuts in 2025.
The baht traded at 34.58 per US dollar at 0427 GMT according to LSEG data, after hitting a three-week low of 34.61 earlier in the day.
"The baht has been very volatile, but there are reasons to explain that was due to external factors," Mr Sakkapop said.
On Thursday, Finance Minister Pichai Chunhavajira told reporters that the BoT must ensure the baht is competitive and supportive of exports.
Mr Pichai also said the central bank would have to bring inflation to the mid-point of the 1% to 3% target range. He said the government was planning measures to boost spending.