Krona Rises as Ingves Speaks About Dangers of Low Interest Rates
The Swedish krona rose today as Riksbank Governor Stefan Ingves talked about dangers of extremely low interest rates. Forex market participants interpreted the comments as a hint that the central bank will not lower borrowing costs in the near future.
There were demands for the central bank to lower lending rates as a measure for battling rising unemployment. In a response, Ingves said that he cannot stick to short-term perspective and explained long-term dangers of excessively low rates. Unemployment climbed from 7.2 percent in August to 7.4 percent in September (the seasonally adjusted measure was stable at 7.8 percent, though).
USD/SEK fell from 6.5890 to 6.5543 as of 13:27 GMT today.
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Earlier News About the Swedish Krona:
- Swedish Krona Dips vs. Euro on CPI (2012-10-11)
- Swedish Krona Falls Amid Interest Rate Cut Talks (2012-10-03)
- Swedish GDP Growth Revised Down, Krona Dips (2012-09-14)
- Swedish Krona Goes Higher with Retails Sales (2012-08-27)
- Krona Gains on Growth of Swedish Industrial Production (2012-08-14)