The Bank of Thailand has stated it is prepared to address fluctuations in the baht to minimize its impact on businesses. The central bank noted that the baht's recent appreciation is primarily driven by a weaker US dollar, reflecting market expectations regarding the Federal Reserve's policy direction.

Pimpan Charoenkwan, Assistant Governor of the Financial Markets Operations Group, highlighted in a Monday statement that the baht is also under pressure from foreign exchange sales by exporters and gold trading firms, as well as capital inflows into the bond market.

According to the statement, the baht strengthened by approximately 1% last week.

The central bank is implementing additional measures, including: - Proposing amendments to regulations with the Ministry of Finance to raise the threshold for unrepatriated overseas income from the current $1 million per transaction to $10 million. - Revising operational guidelines and instructing financial institutions to enhance scrutiny before processing gold-related foreign exchange transactions.