The euro rose on Wednesday. What about the Swedish crown
The euro surged forward against several European currencies during today’s session. The euro jumped 1.05% against the Swedish crown and traded at 11.426. The currency continues to be on track for the biggest single-day gain against crown since March.
The Swedish currency fell to a new low on Wednesday. The country’s central bank decided to take a less aggressive stance on its policy tightening. The forex markets were surprised by this news, as they expected the central bank to remain hawkish. However, Sweden’s central bank hiked its interest rate by only half a percentage point, reaching 3.50%. They also indicated that they could continue raising rates during their next meetings, which will be held in June and September. The hikes could be smaller.
Over the past few sessions, the U.S. Dollar had lost 0.7% against the crown. But after the Riksbank’s decision, the greenback firmed, trading at 10.305 crowns.
During the session, the euro recovered some losses. On Tuesday, traders’ concerns about the U.S. banking sector supported the safe-haven currencies, pushing the euro lower. Kenneth Broux was the head corporate research for FX rates and FX at…