It wasn't long ago that the krona was considered a true floating currency, recalls Robert Bergqvist, senior economist at SEB.
"Back then, the weak krona was seen as a problem. Now it's the opposite - the krona has made an exceptional move over the past 1.5 years," he says.
According to him, the krona's weakening against the dollar between 2015 and 2025 was due to low confidence in the Swedish economy, including highly leveraged, interest-rate-sensitive households. A large part of it was also due to the Swedish Central Bank.
The negative interest rate and the Swedish Central Bank's experimental monetary policy when the Swedish Central Bank assigned itself a currency mandate and sold kronor out of fear that the krona would become too strong.
Provides benefits
The dollar strengthened significantly during those years, but then Donald Trump introduced tariffs, and over the past year the dollar has weakened significantly.
The krona has strengthened by 20 percent in a year and a half. The Swedish economy is stable, and the economic picture of Sweden is more positive.
Even though the krona has not strengthened as much against the euro, the krona exchange rate brings advantages. Swedes get more for their money abroad, especially in the US, and feel richer when travelling.
The risk of inflation also decreases; everything that is imported becomes cheaper.
Not everyone is happy, though. Export companies are facing a major headwind when Swedish goods become more expensive for foreign buyers due to the strong krona.
"We have a large Swedish export industry with many workshops and industrial companies. When the krona strengthens, competitiveness deteriorates," says Maria Landeborn, senior strategist at Danske Bank.
Affects the stock market
Profits are simply lower, and that also affects the stock market, she explains. The market has been experiencing lower profits with a stronger krona in recent quarters, and she believes that this will continue in the first quarter of this year.
Savings are also taking a hit from the currency. For example, global funds have declined, which has had a big effect. Many pensions are in global funds, says Maria Landeborn.
Although Robert Bergqvist doesn't think we should be too worried about the pension money being affected.
"There should be great respect for the export industry's difficulties in selling goods, but the fact that pension money decreases in value is mostly a dent in the curve. They will stay there for a long time, and there are so many other things that determine how pension money develops," says Robert Bergqvist.
Johanna Cederblad/TT
Facts: The Swedish krona
TT
The krona has strengthened by approximately 17 percent against the dollar in 2025.
One dollar cost 9.21 kronor at the end of 2025. At the end of 2024, the dollar cost 11.06 kronor.
Against the euro, the strengthening is not as great, just over 5 percent in 2025.
One euro cost 10.80 SEK at the end of 2025, compared to 11.46 SEK at the end of 2024.
A stronger krona makes exports more expensive for foreign buyers, and Swedes who trade with krona abroad get more for their money. Saving in foreign assets becomes less profitable when the krona is strong.
