Aug. 31 (Bloomberg) -- The krona may weaken tomorrow after a report economists predict will show Swedish manufacturing contracted, BNP Paribas SA said.
Sweden’s purchasing managers’ index will show a reading of 49.8 for August, from 50.1 the previous month, according to the median estimate of nine economists surveyed by Bloomberg before tomorrow’s report. A level above 50 signals expansion. The Riksbank last month raised its main interest rate for a seventh time in 12 months to 2 percent as it strives to keep inflation in check after the economy last year grew the most in the European Union.
“If you do get PMI slowing, particularly if it goes below 50, and if that provides slower rate hikes from the Riksbank, then that implies a weaker krona,” Steven Saywell, head of foreign-exchange strategy in London, said today by phone.
The krona strengthened 0.1 percent to 9.174 per euro at 11:20 a.m. in London. It has weakened 1.5 percent against the 17-nation currency this month.
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