Recent developments indicate a mixed outlook for the SGD to THB exchange rate. Analysts noted that the Singapore Dollar (SGD) has been supported by the Monetary Authority of Singapore (MAS) maintaining its monetary policy amid robust economic growth. Singapore's GDP growth of 2.9% for Q3 2025, exceeding expectations, lends confidence that the SGD may remain stable. However, downward adjustments in core inflation forecasts suggest a more accommodative stance may emerge if economic pressures persist.
Conversely, the Thai Baht (THB) faces challenges primarily due to external factors such as the escalating US-China trade tensions. The Deputy Central Bank Governor of Thailand has warned that these tensions could significantly hinder economic growth prospects, projecting a slowdown to 2.2% for 2025 and 1.6% for 2026. In response to the Baht's recent strength, which hit a four-year high, the Thai government and the Bank of Thailand are collaborating to stabilize the currency, indicating potential interventions that could influence its value against the SGD.
Current exchange rate data shows the SGD to THB is trading at about 24.80, close to 30-day lows and 1.1% below its three-month average of 25.07. This stability follows a narrow trading range of 3.0%, spanning from 24.61 to 25.36. In addition, fluctuations in oil prices—currently at $65.07, 1.7% below the three-month average—can indirectly impact the Baht as Thailand is a significant oil importer, making the currency susceptible to changes in global oil prices.
In summary, while the SGD benefits from strong domestic economic performance, the THB is under pressure from external trade issues and government measures to control its strength. Analysts suggest that further developments in both economic indicators and geopolitical situations will be vital in shaping the SGD to THB exchange rate outlook in the coming months.
