Danske Bank Tells Clients to Hedge Krone Risk as Gains Persist
- Danish krone has strengthened to levels matching peg crisis
- Risk of a Brexit exacerbating demand for AAA krone assets
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Denmark’s biggest bank is urging pension fund clients to hedge for continued strength in the krone as the currency approaches levels last seen during a speculative attack against the AAA-rated country at the beginning of 2015.
The trading recommendation comes as both Danske Bank A/S and Nordea Bank AB, Scandinavia’s two biggest lenders, expect the central bank in Copenhagen to respond to the krone developments with currency interventions this month.