Early Thursday, the Thai currency stood at 32.12 baht to the US dollar, the lowest level in three years.
The weaker baht followed the trend of other currencies in the region as capital outflow triggered by a signal that the US would scale down its quantitative easing measures caused a reaction from foreign investors, Mrs Pongpen said.
Foreign investors have started selling off their shares, causing a sharp drop in the Stock Exchange of Thailand main index over the past few days, she added. Foreign capital began flowing out of Thailand as a result.
Mrs Pongpen said the central bank will step in if and when it is deemed the Thai currency is weakening too rapidly.
Finance Minister Kittiratt Na-Ranong said on Thursday that the weakening baht at 32 baht to the US dollar is not a case of concern, because Thailand has US$170 billion in foreign reserves and about three trillion baht liquidity in the system.
He said the current value of the baht is considered to be stable and it would be a positive factor on boosting exports.
Asked about concerns the violent political unrest in Egypt would push up the global oil prices, Mr Kittirat said the state Oil Fund is now strong and in black figures, he foresaw no immediate problem.
He believed the oil fund would be able to maintain domestic retail prices of fuel at acceptable levels until the political situation in the Middle East returns to normal.
The Public Debt Management Office reported on Thursday that the public debt in June had increased from the previous month by 47.93 billion baht.
Outstanding public debt as of June 30 totalled 5.22 trillion baht, or 44.27% of gross domestic product (GDP), director-general Chularat Sutheethorn said.
Of the total, 3.65 trillion baht were debts acquired by the government, 1.07 trillion baht were debts of non-financial institution state enterprises, 490.22 billion baht were debts owned by financial institution state enterprises and 813.37 million baht were debts owned by other state agencies, she said.
The government’s debt rose by 48.58 billion baht and the debt of non-financial institution state enterprises was up by 10.48 billion baht, the director general said.
However, the debt of financial institution state enterprises dropped 11.14 billion baht and debts of other government agencies remain unchanged, she added.