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Krona weakens against euro and the dollar

Bloomberg said Sweden’s krona weakened against both the euro and the dollar Friday after second quarter gross domestic product growth was revised down to an annual 1.3 percent from an earlier 2.3 percent estimate.

Sweden's economy rose by 1.3 percent in the second quarter this year compared with the same period of 2011, the Swedish Central Statistics said.

The country’s Riksbank unexpectedly cut interest rates on Thursday, underlining the central bank’s nervousness about a weakening economy and the strong krona.

“Swedish GDP growth has been unexpectedly strong so far this year, which has mainly been due to a large increase in exports of services. But the weak demand from the euro area will now dampen exports and contributes to the forecast for weak GDP growth over the coming period,” the Riksbank added.

 

 

Last Updated (Monday, 17 September 2012 01:17)

 

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