Krona Falls as Production Unexpectedly Drops: Stockholm Mover
Sweden’s krona weakened to its lowest level against the euro in almost five months in Stockholm trading after industrial production unexpectedly declined in April, putting pressure on the Riksbank to cut rates in July.
The krona weakened as much as 0.44 percent to 8.7078 per euro, the lowest since Jan. 24, and traded at 8.7001 as of 10:35 a.m. local time. It slid 0.6 percent against the U.S. dollar.
The Riksbank has kept its benchmark rate unchanged at its two latest meetings, in part because of concerns over household debt growth. While Sweden’s gross domestic product expanded twice as fast as economists had projected at 0.6 percent in the first quarter, Swedish business and consumer confidence unexpectedly slumped last month.
“Today’s figures suggest that the manufacturing sector is still struggling with weak external demand,” Andreas Jonsson, an analyst at Nordea Bank AB in Stockholm, wore in a note today.
Industrial production fell an annual 0.8 percent after sliding a revised 0.1 percent the previous month, Statistics Sweden said today. Production was estimated to rise 0.7 percent, according to the median forecast in a survey of four economists.
To contact the reporter on this story: Niklas Magnusson in Stockholm at firstname.lastname@example.org
To contact the editor responsible for this story: Tasneem Brogger at email@example.com