Sweden’s krona climbed to a six-week high versus the euro after the nation’s central bank refrained from easing monetary policy and signaled the unprecedented stimulus it’s already doing is helping steer the economy out of a deflationary trap.
Sweden’s currency climbed against all 31 of its major peers. The Riksbank kept its repo rate at minus 0.35 percent and said it was ready to expand monetary stimulus if needed. It also said existing policies were “supporting the continued positive development of the Swedish economy.”
The krona gained 0.8 percent to 9.3929 per euro at 9:36 a.m. London time, and reached 9.3852, the strongest level since July 23. It appreciated 0.9 percent to 8.3609 per dollar.
Policy makers also maintained the size of a government-bond purchasing program at 135 billion kronor for this year. Officials said they were prepared to rapidly increase stimulus, even between ordinary policy meetings. Measures could include expanding quantitative easing and intervening in the foreign-exchange market, it said.