The Swedish currency appreciated

Friday, 15 April 2011 02:18

The Swedish currency appreciated against both the euro and dollar for a third day. The Swedish economy is expected to grow 3.8 % in 2012 and 3.6 % in 2013. It forecast a 4.6 % expansion this year. The Riksbank is expected to raise its interest rate by 25 basis points to 1.75 % next week.

The Krona strengthened 0.4 % versus the euro to 8.9709 its weekly gain to 0.2 %. The Swedish currency gained 0.1 % against the dollar to 6.2060, after appreciating to 6.1851, matching the strongest level since August 2008. Norway’s krone weakened versus most major currencies.

The Riksbank (Central Bank) has increased its key rate five times since the start of July, raising it to 1.5 % in February from a record low of 0.25 % to prevent the fastest recovering economy from overheating. Riksbank Governor Stefan Ingves has said he can’t rule out raising rates at all five remaining policy meetings this year, it will announce its next decision on April 20

Swedish house prices slipped in the three months through March from the previous quarter as the central bank signaled interest rates will continue to rise and after the regulator imposed a cap on mortgage lending.