S$1 to 24.35 baht: Thai baht hits strongest levels against S'pore dollar in nearly 3 years

Going to Thailand?

It is going to cost a bit more these days as the Thai baht has rallied against the Singapore dollar.

The baht appreciated to 24.35 baht, its strongest levels against the Singapore dollar in nearly three years.

The last time the baht was this strong was in January 2023.

A year ago, it was 25.4 baht per S$1 in December 2024.

At its weakest in May 2024, the baht was trading at 27.2 baht per S$1.

However, the Thai baht is nowhere as strong as it was in 2020.

Exactly five years ago, it was 22.55 baht per S$1.

Why is Thai baht strengthening?

The growing strength of the Thai baht has been attributed to a weakening U.S. dollar and the Fed's easing of interest rates, as well as increase in gold prices.

Thailand reportedly has many commercial gold traders, as well as many households that invest in physical gold given their preference of holding this asset.

Given Thailand’s high trade exposure to China, the strength of the renminbi likely also had an impact.

Peak tourism periods at the end of the year also likely contributed to the Thai baht's strength, given the higher demand.

Implications

The Thai currency has hit record highs and outshone regional currencies, making it Asia’s second-best performing currency for 2025, Business Times reported.

However, this has sparked fears of its impact on the Thailand's export-driven economy.

The good news is that the Thai baht is not expected to remain strong and could weaken to 24.70 baht per S$1 next year.

Top photo via Unsplash