Swedish Krona Falls After Riksbank Rate Decision

Dow Jones
Aug 20

0801 GMT - The Swedish krona falls after the Riksbank left interest rates unchanged at 1.75% as expected and refrained from sending stronger signals about the possibility of raising interest rates amid geopolitical uncertainty. The Riksbank reiterated that a rate rise later this year remains possible but there is "considerable uncertainty and developments call for vigilance." In addition to the Iran war, there are several other risks that could affect the outlook for inflation and economic activity such as high equity valuations of U.S tech companies, the sustainability of several countries' public finances, unpredictable U.S. trade policies, the Ukraine war and the summer's drought, the central bank said. The euro rises 0.2% to 11.0391 krona from 11.0152 before the announcement.

 

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