Krona slumps to new euro low

Krona slumps to new euro low
Sweden's currency slipped to a record low against the euro on Friday, while also falling to a five-year low against the dollar.

The euro is now trading at 10.69 kronor, while the cost of the dollar comes in at 8.43 kronor.

Earlier in the day, the government proposed pumping 23 billion kronor ($2.8 billion) into primarily the labour market and construction sectors over the next three years in a bid to cushion the effects of the global financial crisis.

“The content of the crisis package represents a suitable first policy step for stimulating the economy in 2009. But we want to see more of everything,” said Fredrik Bystedt, head of the public finances department at the National Institute of Economic Research (Konjunkturinstitutet).

Bystedt said the government need to start planning now for further stimulus measures in 2010 to stave off a deepening economic crisis.