Revenge for Kronan – Strongest course since 2022

The Swedish currency-already one of this year’s winners among the so-called G10 currencies-lifts about 10 cents against both the dollar and the euro in Tuesday’s trade.

One dollar cost SEK 10.00 at 13. It is the strongest krone course against the dollar since the intradition trade on Tuesday, March 11, when the dollar was down to SEK 9.98.

In the middle days of 2023, a dollar was down of SEK 9.91. But before 2022, it belonged to the unusual with a dollar of over SEK 10.

At the same time, one euro costs SEK 10.82, which is the strongest krone price against the euro since autumn 2022.

The reinforcement against the euro Has taken place since the beginning of February and, for example, Handelsbanken found in a market update almost two weeks ago that there are several contributing factors to this.

For example, the bank mentions that the krona is undervalued to the euro and the state finances in the euro area are not as strong as they are for Swedish. In addition, the European Central Bank (ECB) is expected to reduce the policy rate by 0.50 percentage points during the year, while the Riksbank, according to Handelsbanken’s assessment, leaves the policy rate at the current level. All this means that you now see a gradual decline during the year for the euro.

As for it However, the US dollar is seen a scenario with an upward recourse for the dollar when the market’s view of the American economy is considered too pessimistic.

« In the slightly longer term, the uncertainty should decrease around customs and possible inflation problems, while the Fed continues slowly with its interest rate cuts. Then the krona should be further strengthened against the dollar, » Handelsbanken writes.

For households, there is additional advantage with a stronger krona than just that the holiday cash when it comes to travel abroad is worth a little more. The risk of rising inflation may also decrease a little as a stronger crown can counteract higher import prices.