The ministry and Bank of Thailand will discuss the baht’s weakness as the nation needs “to seek balance” in the currency, finance minister Arkhom Termpittayapaisith said late Tuesday. Arkhom’s comments came after deputy prime minister Prawit Wongsuwan, who is also the acting prime minister, told the finance ministry to closely monitor the currency.

The central bank on Friday said it’s closely monitoring the baht and may take steps, adding that US dollar strength due to the Federal Reserve’s aggressive tightening is affecting neighbours too.

Last week, policymakers in Asia pushed back to stem declines in their currencies, with South Korea ramping up its rhetoric and Japan said to be calling banks for an indicative price at which it can intervene.

The baht’s plunge to its lowest level since 2006 has rattled Thai policymakers with the net oil importer already struggling to contain the highest inflation in 14 years. While a weak local currency is seen as helping exports and tourism – the bright spots in the economy – sticky inflation is eroding purchasing power and hurting the poor.

The baht fell to the lowest since 2006 this month and has weakened the most in Asia in the past five days. It traded at 37.083 against the dollar at 8.16am local time Wednesday, down by 0.3%.

The slump in the currency couldn’t come at a worse time for the government, with the general elections set to be called early next year.

The Bank of Thailand has adopted a hands-off stance toward the baht, insisting its role is limited to curbing extreme volatility. While it has raised the policy rate by 25 basis points, Governor Sethaput Suthiwartnarueput said last month that it will stick with its “gradual and measured” approach. Foreign currency reserves have dropped to US$240 billion from US$278 billion earlier this year.

While the baht has lost about 10% against the dollar this year, foreign funds have ploughed in a net US$8.7 billion into the nation’s stocks and bonds, according to data compiled by Bloomberg. The inflows showed Thailand remains attractive to foreign investors, Arkhom said Tuesday.