Pound Sterling to Swedish Krona (GBP/SEK) Exchange Rate weakens on unemployment data

The Pound was weaker against the Swedish Krona on Friday after data showed that unemployment in the Scandinavian country fell more than economists had forecast in May.

According to a report released by the Swedish Public Employment Service, the nation’s jobless rate fell from the 8.7% recorded in April to 8%. The figure was better than economist forecasts for a figure of 8.4%.

The Swedish Krona also found support after the International Monetary Fund threw its support behind the nation’s Central Bank’s decision to keep interest rates unchanged in order to protect financial stability in the country.

The Riksbank has come under pressure in recent weeks as consumer growth in Sweden has remained below its target for more than two years.

The Bank has been unwilling to cut interest rates due to fears that if it did so then it could fuel record household debt burdens even as unemployment improved.

The Swedish Financial Supervisory Authority warned on Thursday that household debt is one of the greatest risks to financial stability in the nation and opened for some of the measures proposed by the IMF. While the actions taken by policy makers are sufficient for now, the regulator said that it will consider introducing further measures if the situation worsens.

The Krona was also trading higher against the Euro after the single currency remained under pressure from last week’s European Central Bank policy decision and as data released earlier in the session showed that the Eurozone’s trade surplus widened less than expected last month.

Swedish Krona Exchange Rates