The Crown Falls – Two-Year Low Against the Dollar

The Swedish krona belongs – together with the British pound – to the losers in turbulent trading on the global currency market.

» Published: January 13 2025

The Crown Falls – Two-Year Low Against the Dollar
Photo: Jacquelyn Martin/AP/TT

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A dollar cost as much as 11:32 kronor during morning trading, a decline of ten öre and the weakest rate for the krona against the dollar since autumn 2022.

At the start of the year, a dollar cost 11:07 kronor in comparison.

The krona is also weakening against the euro, although not as sharply – down two öre during the morning to 11:52 kronor per euro. Since the turn of the year, the decline against the euro has been seven öre.

The turbulence on the currency market – which is linked to rapidly rising long-term market interest rates – has gained momentum after last week's unexpectedly strong job figures from the USA and is also fueled by a wave of distrust towards government finances in the UK.

A rapid weakening of the krona can affect the scope for the Swedish Central Bank to lower the interest rate. Weakening of the krona also makes travel abroad and imports more expensive, which risks generating inflationary impulses.

Another effect is that a weaker krona can strengthen the competitiveness of Swedish export companies on the global market.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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