The SGD to THB exchange rate is currently range-bound, showing stability.
Key drivers include the interest rate differential, as Singapore’s Monetary Authority has shifted towards a more accommodative policy while Thailand anticipates a stronger baht influenced by capital inflows. Economic growth is also a factor; Singapore's growth outlook has improved, while Thailand faces challenges with potential slowdowns impacting exports.
In the near term, the SGD to THB is expected to trade within a stable range, reflecting its recent volatility where it has been approximately 1.0% below its three-month average, within a range of about 4.8%.
Upside risks could arise if the risk sentiment improves due to stronger oil prices, which are currently near recent highs, potentially boosting the regional economies. Conversely, any further tightening of Thailand's growth forecasts could exert downward pressure on the THB.