Recent forecasts for the SGD to THB exchange rate point towards potential volatility influenced by monetary policy changes in both Singapore and Thailand. As of December 2025, the exchange rate stands at 24.34, which is 2.1% lower than its three-month average of 24.87, indicating some downward pressure on the SGD against the THB.
In Singapore, the Monetary Authority of Singapore (MAS) has recently implemented an easing policy, reducing the slope of the SGD's exchange rate policy band in January 2025 to support economic growth amid lower inflation expectations. This approach was consistent with the reported GDP growth of 2.9% year-on-year for the third quarter of 2025, which surpassed analyst projections. However, escalating trade tensions with the U.S. and concerns around key export sectors may lead to further adjustments in monetary policy, potentially pressuring the SGD.
Conversely, the Thai Baht has seen upward momentum, prompting the Bank of Thailand to take measures to curb its appreciation. The bank is considering regulatory actions regarding foreign income and has anticipated interest rate cuts to stimulate the economy amid negative inflation and reduced export competitiveness. The THB's strength is also challenged by a forecasted GDP growth rate of only 2%, impacted by a strong baht and ongoing global economic uncertainties.
The recent price data for oil shows volatility with Brent Crude OIL/USD at 60.53, down 5.2% from its three-month average. Oil prices influence Thai exports and, subsequently, the THB, especially given that falling energy prices have been a primary driver of negative inflation in Thailand. Thus, any further declines in oil prices could exert additional downward pressure on the THB.
As the SGD/THB exchange rate approaches year-end, analysts will be monitoring economic indicators closely, especially how Singapore's recovery and Thailand's tightening measures play out in the context of prevailing global economic conditions. The current trading range of SGD/THB being relatively stable at 4.2% reflects the complex interplay between these crucial factors, suggesting that significant fluctuations could arise in the near term as market sentiment adjusts to new developments.
