During the European session the Swedish Krona plummeted by 1.5 per cent against the Euro, hitting 8.89 and its weakest level for over a year.
The Nordic currency also lost ground against the US Dollar.
The Swedish Krona Exchange Rate was in the region of 8.8646 against the Euro as of 15:35 am GMT
Meanwhile, the Norwegian Krone extended last week’s declines as the surprise policy statement delivered by Norway’s central bank continues to have an impact.
When Norges Bank gathered to deliver its rate decision and accompanying policy announcement last week investors assumed that with Norway’s high-profile export markets like the US and Eurozone showing signs of economic recovery the central bank would adopt a relatively hawkish stance.
However, Governor Oystein Olsen and his fellow policy makers instead hinted that while interest rates would be held at their current level for now, they could be kept lower than expected for longer than previously assumed.
At the time Olsen commented: ‘There are prospects that the key policy rate will remain at the current level, or somewhat lower in the year ahead.’
In response to the unexpectedly dovish attitude industry expert Paul Lambert asserted: ‘The market has been caught completely the wrong way round. People weren’t expecting Norges Bank at this stage to signal they would be easier than they had been already. It’s a bit of a surprise for them to be so dovish especially when other people are moving away from that.’
The shock decision saw the Krone plummet against rivals including the US Dollar and Euro.
Norwegian Krone at weakest level against the Euro since 2010
By the close of last week the Krone had posted its largest 5-day decline against the US Dollar for nearly 21 years and fallen to its weakest level against the Euro since the close of 2010.
In other Eurozone news, European stocks declined for a fifth day and have now wiped out their gains for the year.
The stocks tumbled as China’s growth forecast was slashed from 7.8 per cent to 7.4 per cent by Goldman Sachs Group Inc.
The Euro was little changed after an index of German business confidence climbed from 105.7 to 105.9 in June, as predicted by economists.
Swedish data to look out for this week includes balance of trade figures, due out on Thursday, and the nation’s retail sales report, scheduled for publication on Friday.
Swedish Krona (SEK) Current Exchange Rates
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The US Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.7930 >
The Pound Sterling/Swedish Krona Exchange Rate is currently in the region of: 10.4111 >
The Euro/Swedish Krona Exchange Rate is currently in the region of: 8.8646 >
The New Zealand Dollar/Swedish Krona Exchange Rate is currently in the region of: 5.0790 <
The Australian Dollar/Swedish Krona Exchange Rate is currently in the region of: 6.1505 –
(Correct as of 15:35 GMT)
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