As the European session progressed, Sweden’s Krona declined against almost all of its most traded currency rivals, notably slumping to 8.7322 against the Euro and 6.5606 against the US Dollar.
The Swedish Krona Exchange Rate was in the region of 8.6739 against the Euro as of 11:55 am GMT
The Swedish currency was adversely affected by the news that domestic manufacturing PMI declined by more than anticipated.
Although economists expected the gauge to dip to 53.1 in July from June’s 53.5, it actually dropped to 51.3 – taking the index much closer to the 50 mark separating growth from contraction.
The Krona was already under pressure as data published earlier this week showed that Sweden’s overall economic output declined by 0.1 per cent in the second quarter of the year compared to the first – largely due to declining export demand from the rest of Europe.
The Krona’s decline against the Euro was exacerbated as the common currency gained support from the news that manufacturing in the Eurozone grew more rapidly than first estimated.
The EUR/SEK exchange rate hit a low of 8.6813
July’s manufacturing PMI reading for the Eurozone was upwardly revised to 50.3 following an earlier estimate of 50.1. The figure marks a return to expansion following June’s 48.8 result.
The moderately better than expected figure saw the Euro gain on several of its rivals – advances were limited however ahead of today’s European Central Bank rate decision.
In response to the Eurozone data Markit economist Rob Dobson stated: ‘Eurozone manufacturing made a positive start to the third quarter, with welcome signs of growth returning to the sector. The PMI rose to a two-year high, as rising export demand and stabilising domestic markers took growth of new orders and output to rates, albeit still modest, last scaled in mid-2011. This hopefully places the sector nicely to provide a positive spur to the third quarter GDP numbers.’
The next major piece of Swedish economic data to watch out for, domestic inflation rate figures, isn’t due for publication until the 13th.
Swedish Krona (SEK) Current Exchange Rates
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The US Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.5609 >
The Pound Sterling/Swedish Krona Exchange Rate is currently in the region of: 9.9644 >
The Euro/Swedish Krona Exchange Rate is currently in the region of: 8.6739 >
The New Zealand Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.1917 >
The Australian Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.8536 <
(Correct as of 11:55 GMT)
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