The Swedish krona climbed today as the central bank left interest rates unchanged, refraining from easing the monetary policy to subdue the currency’s strength. The krona appreciated after the bank did not give hints that it is going to join the currency war.
The Riksbank kept its main interest rate at 1 percent today. The decision was not unexpected, but market participants were a bit surprised that the statement did not mention the krona’s strength. Previously, Swedish lawmakers were talking about the negative impact of the currency’s appreciation. Yet there were not hints that the central bank is going to join the competitive devaluation and that boosted the Swedish currency.
USD/SEK fell from 6.3645 to 6.2803 as of 15:15 GMT today.
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