The Swedish krona gained today, leading to speculations that the central bank will step in to subdue the rally of the currency that threats growth of consumer prices.
The strong currency has adverse impact on inflation and the Riksbank may intervene to bring the Consumer Price Index to the target of 2 percent. Consumer prices were unchanged (posted zero growth) in March. Riksbank’s First Deputy Governor Kerstin af Jochnick thought that the rally of the krona is over, saying:
There are fundamental factors for why the krona is at about this level. We think that it will remain at about this level.
USD/SEK went down from 6.6189 to 6.5729 as of 10:50 GMT today.
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