SEK Best Performer As Riksbank Leaves Rates Unchanged

Sweden is ignoring talk of a new round of currency wars that threatens to dominate Group of 20 talks this weekend.

Central bank Governor Stefan Ingves said the krona’s appreciation has brought it to an appropriate level and predicted the currency’s exchange rate will probably remain where it is.

The krona was today’s best-performing major currency against the euro, the dollar and the yen after the Stockholm- based Riksbank agreed to leave its main interest rate at 1 percent. Nine of the 22 economists surveyed by Bloomberg had estimated policy makers would deliver a quarter-point cut as Swedish exporters struggle to stay competitive.

The krona gained as much as 1.2 percent against the euro and traded 1 percent higher at 8.4754 as of 1:15 p.m. local time. Versus the dollar, the krona soared as much as 1.4 percent. Today’s gains brought the Swedish currency to its highest against the euro since Oct. 1.

“This is an appropriate level of the krona exchange rate,” Ingves said in an interview today, after presenting his bank’s decision to reporters in Stockholm. “We’re happy with the level we’re seeing now. It’s a level that I think will last.”

Bloomberg

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