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The Swedish krona has not been this weak against the dollar in 17 years

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The Swedish krona has not been this weak against the dollar in 17 years
The Swedish krona is also at a decade-low against the euro. Photo: Jessica Gow/TT
15:57 CEST+02:00
The Swedish krona keeps falling and is now at its worst levels against the dollar since 2002.

The krona came in at 10.79 against the euro and 9.65 against the US dollar in Thursday trading.

Since the turn of the year the Swedish currency has dropped six percent against the euro, which has not been this expensive compared to the krona since the summer of 2009.

Meanwhile, the krona has dropped nine percent against the US dollar, its worst level since 2002.

Financial Times reports that the krona is the world's worst-performing major currency so far this year.

"I can't see what's going to stop this," Michael Grahn, chief economist at Danske Bank, told Swedish news agency TT.

"Unfortunately I think it is going to get even worse."

In theory, a weak krona should push up import prices and inflation, but this is not yet happening in Sweden, where the Central Bank is expected to keep the key repo interest rate at -0.25 percent for the time being. 

There are both winners and losers.

If you are a tourist in Sweden, it is wonderful news. Your euros and dollars will buy you many more cinnamon buns and dark Nordic coffee that they would have five years ago.

But if you are working in Sweden, you've effectively taken a substantial cut in your annual euro or dollar earnings in the same time period, and will not have as much money when you go back home to visit.

ANALYSIS: What you need to know about the state of the Swedish economy

 
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