The SGD to THB exchange rate currently shows a bearish bias.
Key drivers influencing this outlook include the interest rate differential, with Singapore easing its monetary policy while the Bank of Thailand is cautiously optimistic about future rates. Additionally, strong economic growth projections for Singapore support the SGD, although inflation may moderate. On the other hand, the Thai Baht is expected to appreciate against the backdrop of a stronger current account and expected capital inflows, despite warnings regarding export growth due to its strength.
In the near term, the SGD to THB is likely to trade within a stable range but may fluctuate based on broader market conditions.
Upside risks could stem from a weakening US dollar boosting the THB further. Conversely, if global oil prices rebound substantially, this could shift sensitivity against the THB, affecting its overall strength. Current exchange rate data shows SGD to THB at 24.53, slightly below its three-month average, reflecting a 4.8% trading range over recent months.