Swedish Krona Weakens After Election Results in Hung Parliament
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Sweden’s krona, this year’s worst-performing major currency, declined to the lowest level since 2012 against the dollar, as weekend elections left the nation with a hung parliament.
The Nordic currency dropped against all but two of its 16 major peers as voters yesterday ousted the government of Prime Minister Fredrik Reinfeldt and handed power to a Social Democrat-led opposition headed by Stefan Loefven. The krona pared losses against the euro, and volatility on the currency pair dropped, as strategists from banks including Goldman Sachs Group Inc. said the effect of the results on financial markets would probably be limited.