• Sweden edition
Business & Money

British pound weakest in 20 years against krona

Published: 20 Feb 13 13:15 CET | Print version
Online: http://www.thelocal.se/46304/20130220/

The British pound is at its weakest in two decades against the Swedish krona, with experts suggesting that now is the time to head to London for a spot of shopping.

“The pound is back to the lows of the early nineties and fortunately we’re on the right side of it,” Jonas Thulin, Head of Global Alpha Strategy at Nordea Markets, told The Local.

On Tuesday, the British pound was worth 9.72 kronor ($1.55), the weakest it has been since the autumn of 1992, according to the Svenska Dagbladet newspaper (SvD).

In fact, the pound has been dropping ever since 2009 when it peaked at 13 kronor, and head Nordea analyst Annika Winsth points the finger at British officials.

“Prime Minister David Cameron’s speech about an EU referendum has been interpreted as negative from a financial perspective. The market also takes into account that the Bank of England has got a new head who signaled inflation,” she told SvD.

Thulin, meanwhile, pointed to the structurally sound Swedish economy as a safe haven for the strong krona, and suggests that with the pound so weak there has not been a better time for Swedes to head over to the UK.

“For the typical Swede, now is the time you want to go shopping in London,” he said.

“As for Brits, it’s not good news if they’re planning on coming to Sweden, unless they bought currency at a better time.”

Thulin added that the future appeared bleak for the pound, and predicted a continued drop over the year.

“According to today’s data, the trend will likely continue for a while,” he told The Local.

“We’re betting that we haven’t seen the end of this yet.”

Oliver Gee
Follow Oliver on Twitter here

What do you think? Leave your comment below.

Your comments about this article:

The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.

08:17 February 25, 2013 by Kronaboy
So it's going to cost a F**k of lot more for UK tourists to travel to Sweden, while Swedes (and presumably other Nationals) will be travelling to the UK by the Ryanair load to do their shopping, the £ you have to pay for a V70 has now shot through the roof while the SEK you have to pay for a Dagenham Dustbin has dropped like a rock; OK I accept the fact that the typical middle-aged middle-classed middle-England tawt who has been busily saving his thousands for nice retirement is going to be pissed but apart from that I fail to where the bad news for UK economy is?
ADD YOUR COMMENT   (YOU MUST LOG IN OR REGISTER TO MAKE A COMMENT)
Business & Money headlines
New Telia CEO 'excited' about the job

New Telia CEO 'excited' about the job

TeliaSonera's new head Johan Dennelind believes he is the right man to restore the Swedish telecom giant's reputation after the company's Uzbek bribery scandal. READ () »

ABB board unanimous in pick of CEO

ABB board unanimous in pick of CEO

Swiss-Swedish engineering giant ABB has appointed a new CEO, who has a background in oil and gas, utilities, telecoms and automotive industries and who was a key player in the acquisition of Baldor. READ () »

Wine pulled because it was 'too good': supplier

Wine pulled because it was 'too good': supplier

Sweden's state-run liquor store monopoly has sent back 6,000 bottles of a Spanish wine because it tasted better than expected, according to a Swedish alcohol supplier. READ () »

Sweden may cut aid to Palestinian territories

Sweden may cut aid to Palestinian territories

Development aid minister Gunilla Carlsson has said that the Swedish government may reduce development assistance for the Palestinians since they have failed to reach a peace agreement with Israel. READ () »

Gothenburg corruption blamed on city culture

Gothenburg corruption blamed on city culture

A hierarchical "Gothenburg Spirit" among politicians and civil servants contributed to a culture of corruption in the past decade, concluded a report on Sweden's second largest city. READ () »

Sweden abandons bid to lift EU snus export ban

Sweden abandons bid to lift EU snus export ban

The Swedish government has given up its efforts to force the European Union to scrap its ban on the export of snus, choosing instead to focus on protecting the popular moist tobacco product's use in Sweden. READ () »

Labour migration in Sweden
'Swedish work-visa window too narrow'

'Swedish work-visa window too narrow'

Since 2008, migrants to Sweden can swap course from seeking asylum to seeking a work visa with the help of an employer. The Local speaks to one migrant who praises the system, while saying it could be improved. READ () »

Fire hits Swedish nuke plant near Gothenburg

Fire hits Swedish nuke plant near Gothenburg

A small fire broke out at the Ringhals nuclear power plant in western Sweden on Wednesday morning, less than a day after the reactor had been removed from special observation stemming from a series of safety lapses in 2009. READ () »

Bankruptcy hits major Swedish free school firm

Bankruptcy hits major Swedish free school firm

JB Education, one of Sweden's largest operators of publicly funded and privately managed free schools, announced on Tuesday it was declaring bankruptcy. READ () »

US judge rejects Saab bankruptcy lawsuit

US judge rejects Saab bankruptcy lawsuit

A US court has dismissed a $3 billion lawsuit by previous Saab owner Spyker alleging that US auto giant General Motors was responsible for causing the Swedish carmaker's bankruptcy. READ () »

More Business & Money

Find a new job in Sweden now
17/06 Authorization Engineer
Västerås
17/06 Backend infrastructure Team Lead
Stockholm
17/06 BUSINESS SOL ARCHITECT
Kista
17/06 CLOUD DELIVERY EXECUTIVE
Kista
17/06 Component Test Engineer - Research & Development
Axis Communications
Lund, SKÅ
17/06 Console Tech Programmer Tom Clancy?s The Division?
Malmö
17/06 Cost Controller
Schneider Electric
Mora, DLN
17/06 Development Engineer Polymer Materials
Tetra Pak
Lund, SKÅ
17/06 Director of Design - Growth
Stockholm
17/06 Game Test Engineer
Net Entertainment NE AB
Stockholm

ALL JOBS »


 
Latest Business & Money news from Germany
Trade binary options
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Therapy in English
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
The Local's new Marketplace
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Counseling in English
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now