Sweden Krona Falls as Unemployment Gains for First Month in SixJohan Carlstrom
The Swedish currency fell after a report showed registered unemployment rose in June for the first month since December as the largest Nordic economy is struggling to withstand a recession in the euro area.
The non-seasonally adjusted rate, as measured by the number of people claiming benefits, rose to 4.4 percent in June from 4 percent the previous month, the Stockholm-based Public Employment Service said in a statement on its website today. Seasonally adjusted the rate held at 4.5 percent.
The krona depreciated as much as 0.41 percent versus the euro and traded 0.38 percent lower at 8.7150 against the European currency at 8:44 a.m. in Stockholm.
Sweden’s central bank last week kept its main interest rate unchanged and stuck to a forecast for tightening to start in the second half of next year after a krona sell-off helped bring inflation closer to target.
The bank last week said output in the $540 billion economy will grow 1.5 percent this year compared with 0.7 percent in 2012. Swedish industrial production and orders fell more than predicted in May, Statistics Sweden said this week.
Exports, which make up about half of Swedish output, will fall 0.8 percent this year before rising as much as 4 percent next year, Finance Minister Anders Borg predicted last week.
The government is prepared to lower taxes and spend more to support growth and cut unemployment, he said.