Nordic currencies rallied after China's decision to allow its currency to float more freely and investors eye Swedish export boom.

• World stocks soar after China sheds yuan peg
• Swedes fear euro adoption would hurt business

The Swedish currency rose to the strongest in 21 months against the euro after China signaled an end to the yuan’s peg to the U.S. dollar, Bloomberg wrote Monday.

“The Chinese announcement was a relief for investors,” Carl Hammer, a currency strategist at SEB, told the newswire. “The Scandinavian currencies are being bundled with the Australian and Canadian dollars as those which will benefit the most from the China move.”

The krona also rose against the dollar as more speculators believe Sweden’s export will rise. Export of goods from Sweden increased last quarter for the first time since the financial crisis caused world trade to plunge. Exports account for more than half of Sweden’s $377 billion economy.

Norway’s krone gained as the price of crude oil jumped to the highest since May.

China's yuan hit its strongest level in five years Monday after authorities allowed the currency more flexibility. The move was widely seen as a bid to head off a spat with Washington. The announcement triggered a Wall Street rally.