It’s not just the weather in Sweden that is somewhat unstable right now. The Swedish krona is also in flux. In the last month, the krona has lost around 50 öre against the euro.
– We have seen a weakening of the Swedish krona since June, and that is exactly the time you don’t want it to go weak, says Karl Steiner, head of analysis at SEB.
Today, one euro costs SEK 11.77 compared to SEK 11.22 in mid-June. The krone is also losing against the dollar. Several reasons lie behind:
– We see that risk appetite is falling and stock markets are going down and in such an environment the Swedish krona feels bad, but it started much earlier with inflation coming down more than expected, says Karl Steiner.
High pressure on travel
Despite the fact that holidays abroad have quickly become more expensive, travel bookings are at full speed. Several travel companies testify to high pressure on travel within Europe.
– It’s a small cost, it is, says traveler Åsa Englund Svensson, who is on her way to Helsinki on a cruise to celebrate her 50th birthday.
Attracts tourists to Sweden
But the weak Swedish krona also attracts a lot of tourists. The Danish tourists Hanna and Ole Bram take the opportunity to vacation in Sweden while the krone is low.
– It’s good for us Danes, says Hanna Bram and Ole Bram agrees and continues:
– Once upon a time, the Swedish krona was more expensive than the Danish one, so it’s good that it’s going the other way.
Strengthened again in the fall
SEB believes that the krona will strengthen again in the autumn. But it can be affected by what happens in the outside world.
The American central bank FED is expected to lower the interest rate in September, which could give a boost to the Swedish currency.
– Our idea is that when we have holidays around Christmas, it should look better and we should have a stronger krone, says Karl Steiner.