Sweden’s krona traded near the lowest level in more than six weeks against the euro on concern Latvia will devalue its currency, reducing the value of loans in the country held by Swedish banks.
The krona fell against the dollar as Latvia’s central bank spent the most to defend the lats since getting an international bailout more than half a year ago. Norway’s krone declined against the dollar as crude oil fell for a second day, losing 0.6 and global stock markets dropped.
“There is clear concern over contagion risks within the region,” Ashley Davies, a currency strategist at UBS AG in Singapore, wrote in a research report today. “The krona will remain under pressure due to their banks’ loan exposures to the Baltic region.”
The krona fell 0.5 percent to 10.8479 per euro by 5 p.m. in Stockholm, after depreciating to 10.9842 on June 4, the weakest since April 23. It dropped 0.3 percent to 7.8229 per dollar. Norway’s krone rose 0.4 percent to 8.9306 per euro and fell 0.3 percent to 6.4376 versus the dollar.
The price of oil, Norway’s biggest export, fell 0.6 percent to $68.03 a barrel and the MSCI World Index, a gauge of global stock markets, fell 1.3 percent.
From
Bloomberg News.
9th June 2009, 12:51
Nordic Currencies: Swedish Krona Falls on Latvian Lats Concern
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