Dollar costs less for Swedes

The dollar is worth less than 7 kronor for the first time since March 2005. The krona is expected to strengthen even further in the coming months.

One US dollar cost 6.98 kronor just before 10 am on Thursday. The new centre-right Alliance government and the Riksbank’s monetary policy are being credited for the Swedish currency’s strength.

A survey by Nordea Bank of major players on Sweden’s currency markets indicates that further rises are on the cards.

A total of 84 percent of those asked said that the government’s policies will strengthen the krona over the coming year.

Over a six-month period the cost of one euro is expected to fall to 8.99 kronor, with the cost of one dollar falling to 6.95 kronor. The continued strengthening of the krona relies on the Riksbank continuing to raise interest rates as expected.