The slide for the Swedish krona continues to a new record low. One euro now costs twelve kroner on the foreign exchange market, TT reports.
– During the rest of the year, the krona will be weak, there is nothing in sight that would change that, says SEB’s chief economist Jens Magnusson to TT.
On Thursday, everyone expects the Riksbank to raise interest rates.
– But it will mostly just be to avoid a further weakening of the krone, says Magnusson.
The previous record low was from August 21 this year, when one euro during that day’s trading cost just over SEK 11.96.
The krone has lost just over seven percent against the euro this year alone. In ten years, the decline is almost 40 percent.
“Can pay around SEK 12:75”
It is in the professional markets. An ordinary mortal has to pay around 12.75 kroner for one euro at, for example, Forex.
In the short term, however, Jens Magnusson sees the krona gaining new strength again, during the first or second quarter, if the American central bank starts lowering, or alternatively signals a lower policy rate next year. Then the differences compared to Swedish and European policy rates will be smaller, which speaks for a stronger Swedish krona.
The Swedish currency is also under pressure against the US dollar, which costs SEK 11:24 – the weakest krone rate against the dollar this year. It is a drop of 7.5 percent since the turn of the year and the rate can be compared to the historical record low of SEK 11:50, which was set in September last year.