Pound to Swedish Krona (GBP/SEK) Climbs to Fresh Multi-year High as Swedish Industrial Data disappoints

The Pound to Swedish Krona exchange rate advanced to a fresh four-and-a-half year high against the Krona on Friday as data showed that Swedish industrial production shrank unexpectedly in May.

The Swedish currency was already sharply weakened by Thursday’s surprise interest rate cut by the Riksbank and today’s data added to the gloomy picture for the Krona.

The SEK to US Dollar Exchange Rate plunged sharply by 1.7% yesterday, the biggest decline witnessed since July 5, 2013, and touched 6.8760, the weakest level in about two years.

After today’s data the Krona fell 0.4% today to 9.3208 against the Euro.

The Krona weakened for a fourth consecutive day after the data released by Statistics Sweden showed that industrial production fell by 2.2% in May, a sharp reversal from the 0.3% rise witnessed in April. That months figure was also revised downwards from a 0.6% gain.

The weakest performance was witnessed in the machinery industry and the industry for electrical equipment, the agency said.

On a monthly basis, production fell a seasonally adjusted 3.2% in May, following a 2.8% gain in the previous month, revised from 3%. Economists were looking for a 0.1% rise.

A separate report also showed that industrial orders dropped by 2.2% on a month-on-month, adding to the 1.3% decline seen in April. It also marked a second consecutive drop.

The Pound meanwhile was continuing to receive support from a string of positive PMI reports and today’s data which showed that car sales in the UK climbed to their best levels since 2005.