Krona continues to strengthen
TT/The Local · 13 Jul 2010, 19:00
Published: 13 Jul 2010 19:00 GMT+02:00
The krona, which lost a lot of ground during the financial crisis, has strengthened significantly. On the TCW index, which measures the strength of the Swedish currency against a basket of foreign currencies, the krona is now at 129. This is the same level as it reached in April, but if the trend continues it will soon equal its value in autumn 2008.
SEB expects the currency to continue strengthening to 125, after which it is expected to stabilize. The lower the value on the TCW index, the higher the value of the krona.
The euro is now worth 9.40 kronor, down from 9.44 kronor on Monday. The US dollar is at 7.42 kronor, down from 7.50. The Swedish currency’s strength relative to the euro reflects a string of bad economic news from the single currency zone, including a reduced crating rating for Portugal and poor confidence indicators from Germany.