British pound weakest in 20 years against krona

British pound weakest in 20 years against krona
The British pound is at its weakest in two decades against the Swedish krona, with experts suggesting that now is the time to head to London for a spot of shopping.

“The pound is back to the lows of the early nineties and fortunately we’re on the right side of it,” Jonas Thulin, Head of Global Alpha Strategy at Nordea Markets, told The Local.

On Tuesday, the British pound was worth 9.72 kronor ($1.55), the weakest it has been since the autumn of 1992, according to the Svenska Dagbladet newspaper (SvD).

In fact, the pound has been dropping ever since 2009 when it peaked at 13 kronor, and head Nordea analyst Annika Winsth points the finger at British officials.

“Prime Minister David Cameron’s speech about an EU referendum has been interpreted as negative from a financial perspective. The market also takes into account that the Bank of England has got a new head who signaled inflation,” she told SvD.

Thulin, meanwhile, pointed to the structurally sound Swedish economy as a safe haven for the strong krona, and suggests that with the pound so weak there has not been a better time for Swedes to head over to the UK.

“For the typical Swede, now is the time you want to go shopping in London,” he said.

“As for Brits, it’s not good news if they’re planning on coming to Sweden, unless they bought currency at a better time.”

Thulin added that the future appeared bleak for the pound, and predicted a continued drop over the year.

“According to today’s data, the trend will likely continue for a while,” he told The Local.

“We’re betting that we haven’t seen the end of this yet.”

Oliver Gee

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