With investors turning to safe-haven assets in response to declining US and Asian stocks and US budget fears, the Krona began the local session on the back foot against the ‘Greenback’.
The Swedish Krona Exchange Rate was in the region of 6.4226 against the US Dollar as of 11:20 am GMT
The Krona went on to extend declines against the US Dollar as Swedish consumer confidence fell this month as personal finance concerns weighed on sentiment.
The National Institute of Economic Research’s sentiment gauge slid from 98.8 to 98 despite economists forecasting an increase to 101.
Similarly, Sweden’s manufacturing confidence dropped from 100.7 to 94.2.
After the less-than-impressive data was released the Krona declined against the US Dollar for a fourth day.
The Swedish currency was also affected by the news that the country sold off its remaining stake in Sweden’s largest lender, Nordea Bank AB. The 7 per cent stake fetched 21.6 billion Krona and will go towards the state’s debt reduction efforts.
In a statement issued yesterday Sweden’s Financial Markets Minister Peter Norman commented; ‘The government’s role is to regulate the banks, not to own them. Bank shares are risky assets and banks require strict regulation and extensive supervision. The aim of the government is therefore to sell the state’s remaining stake.’
The USD/SEK exchange rate hit a low of 6.3796
The Krona also weakened against the Euro as the common currency was boosted by data showing an improvement in German and Italian consumer confidence. The German GfK survey advanced to 7.1 instead of coming in at 7.0 as forecast.
September’s result was also upwardly revised to 7.0.
Italy’s confidence measure climbed from a revised 98.4 to 101.1, a two-year high and significantly better than the 98.5 predicted.
In a rather data-heavy week for Sweden investors will also be focusing on tomorrow’s trade balance data, Friday’s retail sales report and Saturday’s business confidence index.
Swedish Krona (SEK) Current Exchange Rates
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The US Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.4226 >
The Pound Sterling/Swedish Krona Exchange Rate is currently in the region of: 10.2768 >
The Euro/Swedish Krona Exchange Rate is currently in the region of: 8.6636 >
The New Zealand Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.2688 <
The Australian Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.0073 <
(Correct as of 11:20 GMT)
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