Sweden Captivates Traders Treating Krona as Canary in Coalmine
- Currency's rally in past month makes it harder to stop easing
- Nation highlights dilemma other central banks will encounter
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Sweden’s krona underscores the challenges central banks across the developed world face when contemplating stepping off the treadmill of ever-looser monetary policy.
The krona surged in the past month, reaching the highest on a trade-weighted basis in more than a year, after data from growth to inflation suggested the nation has turned a corner. Some policy makers have even said the economy is now buoyant enough for them to stop adding to the stimulus that’s fueling the recovery.