The latest rankings see the 20-year-old from Guernsey move up one place from 40th.
Watson recently reached the US Indoor Championships and the last-16 of WTA Pattaya City.
Compatriot Laura Robson is a non-mover at 43rd in the world rankings, while Serena Williams – who became the oldest top dog when she returned to #1 last week – remains at the head of the order.
The only change to the top 10 sees the Czech Republic’s Petra Kvitova overtaking Italian Sara Errani into seventh spot.
The ATP top 10 remains as is, with Novak Djokovic topping the pile ahead of Roger Federer and Andy Murray.
The biggest mover is Kei Nishikori of Japan, whose triumph at the Memphis Open last week saw him jump six places to world number 16.