Money Market Abandons Logic in Denmark After Currency Sinks
Danish kroner.
Photographer: Freya Ingrid Morales/BloombergThis article is for subscribers only.
The Danish krone is close to its weakest in 14 years and money-market traders are predicting the central bank will need to raise rates in 2015 to defend its euro peg.
It all looks like a stunning reversal for the krone. Just three months ago, its strength forced Denmark to embark on an historic set of steps to keep investors out, including cutting the main deposit rate to minus 0.75 percent and suspending bond sales.