The Swedish Krona firmed against the Pound and remained close to a one-week high against the US Dollar after Sweden’s Central Bank the Riksbank chose to leave its main lending rate unaltered at 1%.
The Central Bank voted four to two in favour of maintaining the rate at 1% marking a fifth consecutive month that the rate was unaltered. Economists had accurately predicted that the Bank would take no action. The decision pleased investors as the lack of action is likely to assist in avoiding creating a housing bubble in the country and supporting Sweden’s economic recovery.
“The repo rate needs to remain at this low level until economic activity is stronger and inflation rises,” the bank said. “As before, the repo rate is not expected to be raised until the end of 2014.”
Against the Euro the Krona edged higher following the release of disappointing PMI data out of the Eurozone. Concerns over the French economy and worries of a global slowdown put pressure on the Single currency.
Further gains for the Krona seem unlikely after the Riksbank lowered its economic growth forecasts as the country continues to suffer from weak demand from the Eurozone. It cut its GDP forecast from 1.2% to 0.7% in 2013 and from 2.7% to 2.6% for 2014.
Meanwhile in Switzerland the Franc soared close to a two-and-a-half year high against the US Dollar as speculation increased that the Federal Reserve will delay tapering its monetary easing programme until 2014 continued to weigh heavily upon the US currency.
The Franc also found support from a rise in demand for safe-havens as concerns over a possible slowdown of the world’s economy was compounded by the weaker-than-forecast Eurozone PMI data and
Swedish Krona (SEK) Current Exchange Rates
The US Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.3588
The Pound Sterling/Swedish Krona Exchange Rate is currently in the region of: 10.2957
The Euro/Swedish Krona Exchange Rate is currently in the region of: 8.7668
The New Zealand Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.3252
The Australian Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.1208
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8135
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.1216
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6927
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.1652
(Correct as of 12:15 pm GMT)
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