Sweden’s krona jumped to a four-month high against its Norwegian counterpart after economic reports showed diverging economic momentum in the two largest Nordic economies.
The krona appreciated as much as 0.35 percent to 1.1552 against the krone, the strongest level since Oct. 2, and traded at 1.1577 as of 3:08 p.m. in Stockholm.
Swedish consumer confidence improved to minus 2.9 in January, beating a minus 8.8 estimate of 10 economists surveyed by Bloomberg, while Norwegian survey unemployment unexpectedly rose to 3.5 percent in November from 3.3 percent. A central bank survey showed last month that Norwegian companies expect weaker economic growth over the next six months.
“The risk attached to the krone has increased,” Nils Kristian Knudsen, an analyst at Svenska Handelsbanken AB, said by phone from Oslo. “In light of the better than expected numbers out of Sweden and still weak numbers out of Norway, we could see some continuation of this move.”
The krone and the krona have strengthened as the two AAA rated Nordic economies emerged as havens from Europe’s crisis. Sweden’s economy may benefit more from a European recovery than neighboring Norway, whose petroleum wealth has so far shielded western Europe’s largest oil exporter from the fallout of the euro area debt crisis.
Increased optimism in Germany tends to favor an appreciation of the krona versus the Norwegian currency, which may drop further if Norway’s retail sales and registered unemployment data due later this week are weaker than expected, Knudsen said.