The recovery made by the US dollar against other major currencies this week has been a point of interest for many.
Almost all of the economies in which majors are the sovereign currencies, with perhaps the exception of Japan which is doing very well and did not participate in Covid lockdowns or other damaging policies, are struggling with high national debt and inflation at levels not seen since the 1980s.
The United States economy may well be subject to huge inflation which is being met with attempts to mitigate it via interest rate rises from the Federal Reserve, however despite this, the US Dollar is strong.
The Euro has been slipping against the US Dollar for some time now, and numbers below 1.0 have been charted, however other currencies in Europe are also declining against the greenback.
Sweden, whose economy is very stable and which also did not participate in government-enforced lockdowns during 2020 and 2021, has been enjoying commercial success as a result of its exports and among its population. `
Despite this, the Swedish Krona (SEK) has been following the trend set by the British Pound and the Euro, and has been falling in value against the US Dollar.
Last week, the Swedish Krona began to fall and the US Dollar is now trading at over 10 Krona, a low point not seen for a whole year.
Whether confidence in the Swedish economy itself remains high but there is a weakening of confidence over recent speculation that Sweden may join NATO without a referendum, rocking its reputation as the world’s most successful and open democracy and casting possibility that it may alienate Russia which is not only a neighbouring country but a supplier of raw materials and energy resources to Sweden.
Some two weeks ago, the US Dollar grabbed the headlines by surging against the Euro and Pound, and has been on the upward trajectory ever since. This may well have been understandable due to similar levels of inflation and interest rate rises across the Eurozone and the United Kingdom, however now the Swedish Krona weighs into the same direction, even though Sweden’s economy is not subject to the same challenges as the Eurozone or United Kingdom.
Volatility is certainly abound.