Swedish Crown Falls After Central Bank Intervention

Sweden’s crown posted its biggest drop against the euro since last July after its central bank cut domestic interest rates to just 0.25 percent and launched a new round of quantitative easing to prop up a struggling economy.

By GMT 1323, the crown was down more than 1 percent against both the euro and dollar, hitting a six-year low of 8.8170 crowns per dollar. It traded as weak as 9.3480 crowns per euro on Reuters trading systems.

The Norwegian crown , already under pressure from falling oil prices and which often follows its Swedish peer, hit a 13-year low of 8.4166 crowns per dollar, down over 1 percent on the day.

 
“It should be clear that the bank will increasing lean against any Swedish crown appreciation – so the market is likely to take the signal more seriously than the last policy cut,” said Richard Cochinos, Senior G10 FX Strategist at Citi.

via Reuters

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