The Swedish Krona Exchange Rate was in the region of 0.1180 against the Euro as of 15:05 pm GMT
During the First World War Sweden remained neutral.
During the Second World War Sweden remained neutral.
And now it seems that Sweden won’t let itself be dragged into a currency war either.
Although references to exchange rates and currency war concerns have dominated the economic news this week (and are likely to continue to do so until the G-20 meets to discuss the issue on Friday) Sweden has chosen to ignore the hype.
Today the Swedish Krona performed better against the Japanese Yen, US Dollar and Euro than any other currency – and the governor of Sweden’s central bank is pleased with the Krona’s surge.
After the Riksbank announced its decision to hold its main interest rate at 1 per cent, defying some economist’s expectations of a 0.25 cut, the Krona leaped by 1.4 per cent against the US Dollar.
The Swedish currency also appreciated by 1.2 per cent against the Euro (more than a four-month high) despite the latter currency broadly strengthening on the back of positive Eurozone output data. A slight downward correction took the Krona’s gain against the Euro to 1 per cent.
Although Central Bank Governor Stefan Ingves wasn’t physically jumping for joy at the news he certainly seemed pleased.
During an interview Ingves commented: ‘This is an appropriate level of the Krona exchange rate. We’re happy with the level we’re seeing now. It’s a level that I think will last […] We have to expect that the Krona moves sometimes in one direction and sometimes in the other. We have for a long time, when the Krona was significantly weaker than it is today, said that the Krona ought to strengthen, considering the economic development in Sweden. It’s now done that and we now think the Krona is where it ought it be […] The Krona is of course important, We know from experience all the way from the 1990’s that the Krona can move quite a lot in both one or the other direction without being particularly difficult to deal with by the Swedish economy, so in that sense we have adapted to these fluctuations.’
When asked about this week’s meeting of the Group of Seven, and this Friday’s gathering of the Group of Twenty, Ingves stated: ‘There’s a difference between the discussions that are conducted at, for example, the context of Group of Seven and what finally ends up happening.’
Ingves went on to assert that the Swedish central bank is sticking to its guns when it comes to its inflation target and is prepared to deal with market-led fluctuations in the Krona exchange rate.
As one of the few AAA rated nations left in Europe Sweden has emerged as something of a haven during the ongoing financial crisis.
Swedish growth forecasts remained unchanged, although the estimate for the unemployment rate was upwardly revised from 7.6 to 7.8 per cent.
Current SEK Exchange Rates
The Swedish Krona to Pound Sterling exchange rate is currently trading at 0.1023
The Swedish Krona to Euro exchange rate is currently trading at 0.1180
The Swedish Krona to US Dollar exchange rate is currently trading at 0.1591
The Swedish Krona to Australian Dollar exchange rate is currently trading at 0.1520
The Swedish Krona to New Zealand Dollar exchange rate is currently trading at 0.1873
The Swedish Krona to Canadian Dollar exchange rate is currently trading at 0.1556
The Swedish Krona to Emirati Dirham exchange rate is currently trading at 0.5789
The Swedish Krona to Swiss Franc is currently trading at 0.1442
The Swedish Krona to Japanese Yen exchange rate is currently trading at 14.8978
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