BANGKOK: The Thai baht dropped in morning trade on Thursday as the dollar strengthened after the Federal Reserve signalled a slower pace of rate cuts in 2025.

The baht was down 0.04% at 34.545 per dollar at 0225 GMT.

It has weakened 1.1% against the dollar since the start of the year, but is still Asia’s second-strongest currency after the Malaysian ringgit.

Indonesian rupiah, Thai baht weaken ahead of central bank bank rate decisions

Thailand’s central bank left its key interest rate unchanged at a review on Wednesday, but said it is ready to adjust the rate if necessary.