Dollar at 15-year low against krona
TT/The Local · 24 Sep 2007, 18:06
Published: 24 Sep 2007 18:06 GMT+02:00
On Monday, the value of the dollar slipped below 6.50 kronor for the first time since November 19th 1992, which was the day the krona was allowed to float freely on the currency markets.
The US currency currency also reached a new low against the euro on Monday.
The slump comes amid speculation of a US economic slowdown and further pressure on the Federal Reserve to cut interest rates.
"The dollar remains under pressure as the impact of last week's (Federal Open Market Committee) rate cut continues to weigh on the currency," Marc Chandler, global head of currency at Brown Brothers Harriman, told the Wall Street Journal.
Until 1992 the krona had fixed exchange rates with a raft of foreign currencies. But with fluctuations on global currency markets in the autumn of that year came speculative attacks on the Swedish krona.
Hundreds of billions of kronor were committed to the defence of the currency, but to no avail. At 2.30pm on November 19th, the Riksbank finally announced the introduction of a managed float.