The Swedish krona rose today as Riksbank Governor Stefan Ingves talked about dangers of extremely low interest rates. Forex market participants interpreted the comments as a hint that the central bank will not lower borrowing costs in the near future.
There were demands for the central bank to lower lending rates as a measure for battling rising unemployment. In a response, Ingves said that he cannot stick to short-term perspective and explained long-term dangers of excessively low rates. Unemployment climbed from 7.2 percent in August to 7.4 percent in September (the seasonally adjusted measure was stable at 7.8 percent, though).
USD/SEK fell from 6.5890 to 6.5543 as of 13:27 GMT today.
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