Last updated September 19th, 2025.
Currencies around the world have depreciated against the U.S. Dollar for the past few years. It hasn’t been limited to a few different countries or regions either.
The pound, euro, rupee, yuan, and just about every other currency is trading significantly lower against the greenback compared to earlier this decade.
Not a single currency in Asia has been completely safe from the trend. But one of them has performed surprisingly better than most, if not all of its regional peers: Thailand’s baht.
Even the Singapore dollar, which many financial experts consider Asia’s best currency, has not been nearly as stable as the Thai baht.
The Japanese yen, Korean won, and practically all other Asian currencies have recently fluctuated within a wider range against the U.S. Dollar too.
For example, the yen fluctuated within a range of 100 to 150 to the dollar since 2015. The baht moved in a much narrower range of between 30 to 36 to the dollar during that same time – barely above 20%.
For the past decade, the Thai Baht (THB) has fluctuated within a narrow range against the USD. It’s a stark contrast to most other Southeast Asian currencies which have steadily depreciated.
Best Currency in Asia?
The Thai Baht hasn’t always been a robust currency. It was one of the world’s worst performing during the 1997 Asian Financial Crisis. It didn’t fare too well in the more recent global recession either.
However, the Baht has arguably been the top currency in Asia for several years. That’s because of reasons which include a strong tourism sector, weak export numbers, and a lack of reliance on oil or other commodities.
More than 32 million tourists visited Thailand back in 2016. Its capital of Bangkok was (and still is) the single most visited city in the world, beating out Paris and London. This influx of foreign money getting exchanged into Thai baht helps prop it up.
Thai exports have been rather weak lately. But while the nation’s GDP is rising slower than its neighbors, a relative lack of reliance on trade has kept the baht strong.
You can’t say the same thing about places like Malaysia. Thailand’s southern neighbor is extremely dependent on oil exports. Low crude prices have, at least in part, caused the Malaysian ringgit to suffer as one of Asia’s worst currencies.
Plus, countries such as Thailand aren’t going through massive amounts of QE like Japan now is.
How Will the Thai Baht Perform in the Future?
None of this necessarily means that you should buy the Thai baht right now. Past performance doesn’t guarantee future results. And the baht’s history is less impressive when looking at a 10 or 20 year timeframe.
The point still remains: the best currency to invest in isn’t always the most popular one. Nor is it usually the one perceived as “safe” by everyone else.
Over the past few decades, some investors bought up Singapore dollars due to the city state’s reputation of stability. Others bought Japanese Yen to diversify their wealth – without knowing what they’re diversifying into.
Just because you’re investing offshore doesn’t mean you’re any safer. Diversification won’t help you much if it isn’t done in the right places.
As for the Thai Baht? It’s steadily rising against the U.S. Dollar along with most other top-traded global currencies for the time being.
Its future movement will surely depend on the actions of other countries. Yet that would be an entirely different article.
FAQs: Thai Baht, Asia’s Best Currency?
Why is the Thai Baht Considered the Best Currency in Asia?
The Thai Baht has been one of the most stable and best-performing currencies in Asia for years. It has maintained a narrow trading range against the U.S. Dollar, fluctuating between 30 to 36 THB/USD over the past decade.
Such stability contrasts with other Asian currencies like the Japanese Yen or Korean Won, which have experienced wider fluctuations.
How Does the Thai Baht Compare to the Malaysian Ringgit?
The Thai Baht has outperformed the Malaysian Ringgit in recent years. Malaysia’s heavy reliance on oil exports has made the Ringgit vulnerable to fluctuations in crude oil prices, whereas Thailand’s economy is less dependent on such commodities, giving the Baht an edge.
What Has the Thai Baht's Performance Been Compared to Other Asian Currencies?
The Thai Baht has been less volatile than many of its regional peers. For example, while the Japanese Yen fluctuated between 100 and 150 to the U.S. Dollar since 2015, the Baht’s movement has been far narrower.
Even the Singapore Dollar, often considered Asia’s strongest currency, hasn’t matched the Baht’s consistency.
How Does Thailand's Economy Support the Baht’s Stability?
Thailand’s economy benefits from a combination of steady tourism revenue, a strong trade surplus, and minimal reliance on volatile commodities. This economic structure has helped the Baht remain resilient during global financial downturns.