Denmark cut its main interest rate on Thursday for the second time this week as it sought to dampen investor interest in its currency from investors selling the euro after the European Central Bank announced a stimulus package.
The Danish central bank lowered its deposit rate to minus 0.35% from minus 0.2% after cutting from minus 0.05% on Monday. It left its other main interest rates unchanged.
The Danish move came ninety minutes after ECB President Mario Draghi announced an expansion of the ECB’s bond buying program.
The ECB move pushed down the value of the euro, increasing the relative appeal of the krone to investors and pressuring a currency peg which the Danish central bank has defended for decades.
The krone weakened slightly versus the euro which is higher at 7.4459 kroner compared with 7.4427 kroner earlier.
via WSJ
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.