The Swedish Krona climbed to a 2 1/2 year high against the US dollar after Sweden’s central bank – the Riksbank – hiked rates for the sixth time in the past fifteen months. The latest increase added another 25 points to the benchmark rate now set at 1.75 percent.
SwedenÃ¢â‚¬â„¢s currency has gained 4.7 percent this year against a basket of its nine most-traded peers, the best performer tracked by Bloomberg Correlation-Weighted Currency Indexes. The gains come as rising economic growth fuels consumer spending and inflation, forcing policy makers to raise borrowing costs.
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