BLBG:Swedish Krona Advances Against Euro As Economy Returns To Growth
The Swedish krona strengthened against the euro, paring a third monthly decline, after a government report showing the economy returned to growth in the first quarter boosted demand for the country’s currency.
The krona trimmed losses versus the dollar after Statistics Sweden said gross domestic product grew by 0.8 percent in the three months through March after contracting a revised 1 percent the previous quarter. Growth was estimated at 0.2 percent in the quarter in a Bloomberg survey of 15 economists.
“The Swedish economy is doing considerably better than feared,” Kjersti Haugland, senior economist at DNB ASA (DNB) in Oslo, wrote in an e-mailed note to clients. “Today’s numbers reduce the risk of more rate cuts from the Riksbank.”
The krona rose 0.2 percent to 8.9814 per euro at 11:02 a.m. in Stockholm, reducing this month’s decline to 0.9 percent. The currency was 0.3 percent lower at 7.2231 per dollar after weakening as much as 0.6 percent before the report was released.
To contact the reporter on this story: Stephen Treloar in Oslo at streloar1@bloomberg.net
To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net
