SEK Best Performer As Riksbank Leaves Rates Unchanged

Sweden is ignoring talk of a new round of currency wars that threatens to dominate Group of 20 talks this weekend.

Central bank Governor Stefan Ingves said the krona’s appreciation has brought it to an appropriate level and predicted the currency’s exchange rate will probably remain where it is.

The krona was today’s best-performing major currency against the euro, the dollar and the yen after the Stockholm- based Riksbank agreed to leave its main interest rate at 1 percent. Nine of the 22 economists surveyed by Bloomberg had estimated policy makers would deliver a quarter-point cut as Swedish exporters struggle to stay competitive.

The krona gained as much as 1.2 percent against the euro and traded 1 percent higher at 8.4754 as of 1:15 p.m. local time. Versus the dollar, the krona soared as much as 1.4 percent. Today’s gains brought the Swedish currency to its highest against the euro since Oct. 1.

“This is an appropriate level of the krona exchange rate,” Ingves said in an interview today, after presenting his bank’s decision to reporters in Stockholm. “We’re happy with the level we’re seeing now. It’s a level that I think will last.”


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell