The Swedish krona is screaming higher as investors are pulling out of Europe's two biggest currencies, the euro and British sterling.

• Sweden's inflation rate slows
• Sweden calls new EU budget control 'strange'

The euro hovered near 14-month lows in Asian trade Friday on persistent concerns at Europe's economic woes, with a one trillion dollar rescue package from the EU and IMF failing to calm markets.

A euro now costs 9.56 kronor, its strongest point since September 2008. The Swiss franc and the Norwegian krone has also advanced.

"I think we are likely to see further euro weakness, in spite of the emergency package announced over the weekend," Hardeep Dogra, a currencies investor at Schroders Investment Management in London, told Dow Jones.

"The euro area, like the U.K., ultimately faces a period of tighter fiscal policy and loose monetary policy, whereas the likes of Norway, Sweden and Switzerland are arguably heading towards tighter monetary policy, and they are not facing the urgent need to deal with budget deficits," he added.

Emma Lawson, a currencies analyst at Morgan Stanley in London, told Dow Jones that she expects the Swedish krona in particular to keep climbing fast. By the end of the year, she forecasts the euro to be trading at 9.00 kronor, the krona's highest level since the start of 2007.

A negative lead from Wall Street also hit sentiment Friday, after US shares fell as investors were spooked by news of a bomb blast outside a prison in Greece and the spectre of criminal charges against a group of US banks.

The euro remained depressed in Asian trade, buying 1.2537 dollars after falling as low as 1.2517, the lowest since March 2009 despite efforts by eurozone countries to cut spending and grapple with the region's debt problem.

"Four days on from Monday's mega European bailout package the market finds itself pondering the medium-term impact of Europe's massive debt burden," David Croy, strategist at ANZ bank in Wellington, said.

"The bailout can address liquidity concerns, but austerity is needed to get debt levels back under control. And fiscal austerity implies slower growth, which in turn suggests monetary policy will be looser for longer, with low interest rates adding more downward pressure on the euro."