The recent exchange rate forecasts for the Singapore Dollar (SGD) against the Thai Baht (THB) suggest a resilient outlook for the SGD, supported by strong economic performance and stable monetary policy from the Monetary Authority of Singapore (MAS). Analysts indicate that Singapore's GDP growth of 2.9% year-on-year in Q3 2025, surpassing expectations, reinforces the SGD's strength. The MAS's decision to maintain its monetary policy reflects confidence in the economy despite global uncertainties. Furthermore, a downward revision in core inflation forecasts indicates easing inflationary pressures, which could sustain the SGD's positive outlook.
Conversely, the Thai Baht faces challenges stemming from external factors, particularly the ongoing US-China trade tensions, which have prompted analysts to project slower economic growth for Thailand. The government and the Bank of Thailand’s efforts to manage the baht's recent strength, including interventions to mitigate excessive appreciation that could adversely affect exports and tourism, reflect a proactive stance. These measures are crucial as the baht has recently reached its strongest level in four years.
Current SGD to THB trading data shows the pair hovering around 24.91, nearing 7-day highs and just 0.6% below its 3-month average of 25.06. Stability in this range suggests that the SGD could maintain its position against the THB barring significant shifts in economic indicators or monetary policy changes.
Notably, fluctuations in oil prices can significantly impact the Thai economy, with recent oil prices trading at $63.63, approximately 3.4% below the 3-month average of $65.86. Given Thailand's strong reliance on oil imports, continued volatility in oil prices may create additional pressure on the baht.
Analysts predict that the SGD may remain well-supported against the THB, driven by Singapore's economic resilience and the potential for continued barriers stemming from external trade relations impacting Thailand. Therefore, businesses and individuals engaging in international transactions should closely monitor these developments, as they could influence currency exchange dynamics in the coming weeks.
