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.
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