The Swedish krona strengthened for the third straight day against the dollar after a report showed consumer confidence climbed in April to a nine-month high.
The currency rose against seven of its most-traded peers. The consumer confidence index increased to 4.7, the highest level since July, from zero in March, the Stockholm-based National Institute of Economic Research said today. Data two days ago showed unemployment unexpectedly dropped in March. The Swedish central bank has cut its key interest rate twice since December and forecast more reductions are unlikely amid signs that growth is being sustained.
“Recent economic data such as consumer confidence today and unemployment suggest it’s unlikely that the central bank will cut rates further any time soon,” said Jane Foley, a senior currency strategist at Rabobank International in London. “That should be supportive for the krona, which in my view is still undervalued against its peers.”
The krona appreciated as much as 0.5 percent to 6.6920 per dollar, trading at 6.7148 at 4:41 p.m. London time. It was little changed against the euro at 8.8871, after strengthening to 8.8671.
Norway’s krone declined against the dollar and the euro as a report showed the nation’s jobless rate remained unchanged at 2.6 percent this month. It was predicted to drop to 2.5 percent in a survey of economists by Bloomberg.
The krone fell 0.2 percent to 5.7296 per dollar, and dropped 0.3 percent versus the euro to 7.5829.
Swedish bonds rose, pushing 10-year yields three basis points lower to 1.82 percent. Similar-maturity Norwegian yields fell four basis points to 2.24 percent.
Swedish bonds earned 1 percent this month, outperforming all AAA government securities in the euro region, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Norwegian debt handed investors a 0.6 percent return, matching that of Germany.