Swedish Krona Could Fall Further on Wider ECB-Riksbank Rate Gap
Dow Jones
Yesterday
1331 GMT - The Swedish krona's recent poor performance looks set to continue as the European Central Bank raises interest rates and the Riksbank holds rates steady, Danske Bank's Jesper Fjarstedt says in a note. The eurozone-Swedish policy rate gap stands at 75 basis points, the widest it has ever been, after the ECB raised rates by 25 basis points last week, he says. That spread could widen if the ECB lifts rates again in October and December while the Riksbank lingers until November and February, he says. The euro rises 0.3% to 11.2985 krona and Danske expects it to reach 11.50 in 12 months.
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