Denmark Cuts Rate For Second Time This Week

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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza