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Swedish Krona Bounces After Thursday’ s Drop

July 3, 2015 at 13:24 by Vladimir Vyun

Stacks of Swedish coinsThe Swedish krona bounced today following yesterday’s drop by 1 percent. The decline followed the surprise decision of the nation’s central bank to cut its repo rate even deeper into negative territory.

The Riksbank reduced its main interest rate by 10 basis points to -0.35 percent and extended bond purchases by a further SEK 45 billion. The central bank stated that the extremely loose monetary policy had its effects on the economy, bolstering inflation. Yet the bank decided to ease the policy even more due to uncertainty abroad, especially surrounding the situation in Greece. Additionally, policy makers were worried that the strength of the krona may damp inflation growth.

USD/SEK went down from 8.4591 to 8.4422 as of 13:23 GMT today.

If you have any questions, comments or opinions regarding the Swedish Krona, feel free to post them using the commentary form below.

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