Swedish Krona Falls To 6-month Low Versus Euro After Riksbank Rate Cut
11 Februar 2016 - 5:08AM
RTTF2
The Swedish Krona lost ground against the euro in European
morning deals on Thursday, after the Riksbank slashed rate
unexpectedly into deeper negative territory, as it expects
inflation to remain weaker this year.
The repo rate was cut by 0.15 percentage points to -0.50
percent, from -0.35 percent. Economists had expected to retain rate
at -0.35 percent.
The bank said there is still scope to cut the repo rate further.
The Krona depreciated to 9.6107 against the euro, its weakest since
August 2015, from its early 3-day high of 9.4361. The Krona is
likely to challenge support around the 10.00 zone.
Against its U.S. counterpart, the Krona declined to 8.4758, off
its early 1-1/2-month high of 8.3459. If the Krona slides further,
8.6 is possibly seen as its next support level.
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