Krona Drops as Sweden’s Central Bank Postpones Rate Hike

The Swedish krona fell today, touching the lowest level since June against the US dollar, as the nation’s central bank postponed the planned date of an interest rate hike from the third quarter of this year to the fourth quarter.

The Riksbank left its main interest rate at -0.5% today. The central bank voiced concern about inflation:

Underlying inflation has been somewhat lower than expected recently, which raises questions regarding the strength of the development in inflation.

As a result, the bank pushed the planned hike to a later date, saying that “the rate will begin to be raised towards the end of the year, which is somewhat later than previously forecast.”

USD/SEK rose from 8.5588 to 8.5810 as of 10:21 GMT today, and its daily high was at 8.6191.

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