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Weak Currency

Krona Sinks and Rebounds Slightly

Published onsdag 25 februari 2009 kl 10.31

On Tuesday the Swedish krona fell to its lowest level ever against the euro, at 11.41 kronor per euro. The Swedish currency also lost against the dollar, dropping to 8.97 kronor for every dollar.

The krona rose again slightly against both currencies Wednesday morning, and has been relatively stable against the British pound.

Experts have commented that the low value of the Swedish currency is not because of any relative problems here, but rather because speculators tend to move to large currencies in times of crisis, even when those economies are weaker.

The National Institute of Economic Research reports in its latest Economic Tendency Survey that confidence among Swedish businesses and households has not changed in the last month. However, households are not as pessimistic about the economy as previously.

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