The Crown on the Decline Again

October became a dark month for the krona, which lost 50 öre against the dollar. Fewer expected American interest rate cuts and signals of a weaker Swedish economy contributed.

» Published:

The Crown on the Decline Again
Photo: Martina Holmberg / TT

Share this article

In the beginning of October, the krona was down and hovering around the ten-krona mark. But after a longer period of strengthening – the Swedish currency did not quite reach below ten – it came to a stop about a month ago. For around that time, signals started coming from the other side of the Atlantic – questioning whether the American central bank had gone too fast with the double interest rate cut in September.

Over the past month, interest rate actors have clearly reduced the expected pace of further US rate cuts, since the economy is holding up, and thus the dollar is strengthening against most currencies, including the euro.

However, the krona has also weakened against, among others, the euro and the pound. Against the euro, the krona has lost approximately 15 öre during October.

What has likely contributed extra to the krona's weakening is the slightly weaker economic signals, that it may take longer for the Swedish economy to gain momentum. Additionally, interest rate and currency traders have factored in even more rate cuts from the Swedish Riksbank. And when the interest rate gap increases between countries, Sweden, the US, and the eurozone, it tends to change exchange rates – in this case, to the disadvantage of the Swedish krona.

A dollar cost 10.58 on Friday, while the euro was quoted at 11.45.

Tags

Author

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

More news

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

China Urges Tech Giants to Halt Nvidia AI Chip Purchases

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Jerry Greenfield Departs Ben & Jerry's, Citing Silencing by Unilever

Avanza Introduces Digital Trading on London Stock Exchange

Avanza Introduces Digital Trading on London Stock Exchange

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Uber Introduces Safari Tours in Kenya's Nairobi National Park

Swedish Inflation Expectations Rise Slightly in Latest Survey

Swedish Inflation Expectations Rise Slightly in Latest Survey

Sweden's Unemployment Rate Stays High in August

Sweden's Unemployment Rate Stays High in August

Stockholm Stock Exchange Sees Cautious Rise

Stockholm Stock Exchange Sees Cautious Rise

Verisure Returns to Stockholm Stock Exchange with Major Listing

Verisure Returns to Stockholm Stock Exchange with Major Listing

Oracle and Partners to Acquire TikTok's US Operations

Oracle and Partners to Acquire TikTok's US Operations

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Taco Bell to Open First Sweden Location in Stockholm Winter 2025

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

Retail Outlook Brightens as Consumer Spending Set to Boost Economy

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

SBAB Predicts Stable Housing Prices Despite Autumn Interest Rate Cut

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Asian Stock Markets Open Mixed Amid Fed Rate Cut Speculation

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

Microsoft Announces $30 Billion Investment in UK Cloud and AI Infrastructure

US Stock Market Sees Slight Decline Amid Retail Sales Data

US Stock Market Sees Slight Decline Amid Retail Sales Data

Trump Extends TikTok Deal Deadline to December 16

Trump Extends TikTok Deal Deadline to December 16

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

NHTSA Investigates 174,000 Tesla Cars Over Door Handle Issues

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Ford Cuts 1,000 Jobs at Cologne Factory Amid Weak Electric Car Demand

Swedish Households Shift from Borrowing to Diverse Savings Strategies

Swedish Households Shift from Borrowing to Diverse Savings Strategies

German Investor Confidence Surges Unexpectedly in September

German Investor Confidence Surges Unexpectedly in September