March 1 (Bloomberg) -- Sweden’s krona strengthened the most against the dollar in over two weeks after the Nordic country’s economy unexpectedly avoided contraction.
The krona strengthened as much as 1 percent versus the dollar to 6.4032, its biggest intraday move since Feb. 13, and traded at 6.4355 as of 2:17 p.m. in Stockholm. The krona was the second-biggest gainer against the euro among major currencies today.
Gross domestic product was unchanged in the fourth quarter after expanding a revised 0.3 percent in the prior three-month period, Stockholm-based Statistics Sweden said today. Annual growth accelerated to 1.4 percent from 0.7 percent, the agency said. GDP was estimated to fall 0.8 percent in the quarter and grow 1.1 percent in the year, according to the median estimates compiled by Bloomberg.
The numbers “indicate that the Swedish economy didn’t dip as much as had been feared in the fourth quarter and that there is resistance in the economy,” Richard Falkenhall, a currency strategist at SEB AB in Stockholm said today. “There is momentum going forward and we see a recovery of the Swedish economy, and now from a stronger level.”
Swedish consumers kept up spending in the fourth quarter, enabling the $500 billion economy, home to truckmaker Volvo AB, to avoid contracting even as demand falls from the recession-plagued euro area. The central bank has cut its main lending rate four times since December 2011 to support growth as companies cut jobs to cope with declining export demand.
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