SEK falls towards new decade-low versus EUR

The Swedish crown tumbled half a percent on Monday, touching a new decade low versus the euro at 10.85, hurt by a combination of global trade tensions and signs deeply negative interest rates will not rise towards zero any time soon.

Against the dollar too the crown fell almost half a percent but held off record lows touched last week. The currency has lost about 7 percent this year against the euro and 9 percent to the dollar.

“The key trigger is that people have sort of given up on the expectation that the Riksbank will reach zero (percent) this year and we will live with negative interest rates for another year and that’s the main reason for this move,” said Richard Falkenhall, senior FX strategist at SEB in Stockholm.

He said the Sino-U.S. trade tensions were also exacerbating the weakness as was the March-May dividend payment season. Around 34 billion crowns are due to be paid out this week, of which a portion would likely be repatriated abroad, he added.


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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