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.
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