Current forecasts for the SGD to THB exchange rate reflect a cautious outlook amidst escalating global trade tensions, particularly influenced by U.S. tariffs. Analysts note that President Trump's recent announcement of a 10% tariff on Singaporean imports, alongside a steep 36% tariff on Thai goods, has heightened concerns regarding emerging Asian currencies, significantly impacting market sentiment. This backdrop has led to a 2% decline in both the Thai baht and the South Korean won, as fears of a global trade war increase risk aversion among investors.
In the context of the SGD, its value is closely managed by the Monetary Authority of Singapore (MAS) against a basket of currencies from major trading partners. Despite Singapore's favorable trade relations with the U.S., the imposition of tariffs has been a hindrance, pushing the SGD-THB exchange rate to recent 14-day lows of approximately 25.26. This level is not far below its 3-month average of 25.41, indicating a relatively stable trading range of just under 4%, with recent fluctuations between 24.82 and 25.78.
Turning to the Thai baht, forecasters have observed a deteriorating outlook for the currency amid the ongoing trade tensions and reductions in interest rates by various central banks in the region, aimed at bolstering economic growth. The baht's decline is compounded by external factors such as oil prices, which have recently surged, with crude oil trading at around 74.23 USD—10.9% above its 3-month average. This volatility in oil prices can further strain the baht, affecting its exchange rate against the SGD.
Overall, market experts suggest that the SGD to THB exchange rate will remain influenced by both geopolitical developments and economic indicators, urging businesses and individuals involved in international transactions to monitor these factors closely to mitigate currency risk and optimize their exchange strategies.