Krona hits 14-year high against pound

Tourists from Sweden are set to benefit this spring as the krona continues to strengthen against major global currencies.

Continental Europe, the US and the UK have all become cheaper places to shop in recent months for anyone paying with Swedish currency.

The euro and the dollar are each almost two kronor cheaper than they were a year ago, while the pound – at 10.80 kronor on Tuesday – costs 2.30 kronor less than last year. Not since 1996 has the pound cost so little.

With a number of EU countries running heavy budget deficits and suffering financial woes, Sweden is being viewed as a more stable proposition, according to Handelbanken’s currency strategist Jenny Mannent.

“The krona has benefited from all this mess in the world. Many foreign investors have begun speaking about the Swedish krona as a more stable currency in recent months,” she said.

Mannent said she expected the krona to remain strong for the foreseeable future.

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