Swedish Krona Drops as Deflation Worsens

The Swedish krona dropped today as data revealed that deflation worsened last month in Sweden, increasing probability of monetary easing from the nation’s central bank.
The Statistics Sweden reported that the inflation rate fell 0.4 percent in September after declining 0.2 percent in August. The poor data sparked talks that the Riksbank will likely have to reduce interest rates close to zero. Many analysts speculate that the central bank may perform such move as early as this month.
USD/SEK rose from 7.1145 to 7.2338 as of 13:41 GMT today.

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