Citigroup Says Sell Euro Against Swedish Krona on Rate Increase Outlook

Investors should sell the euro against the Swedish krona on expectations the Riksbank will raise its key interest rate, according to Citigroup Inc.

The euro may weaken to 9.1 krona, Valentin Marinov, a London-based currency strategist at Citigroup, wrote in a research report today.

“The krona could be well positioned to regain ground against the euro ahead of the Riksbank rate decision next week,” Marinov said. “The drop we expect will bring euro-krona more in line with its fundamentals.”

The Riksbank is likely to raise its benchmark rate by 25 basis points to 1 percent, according to Citigroup.

The euro fell 0.6 percent to 9.2908 krona as of 5:43 p.m. in London.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net.

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

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