SNB Move Fuels Speculation Danes May Be Next as Krone Gains
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The decision by the Swiss National Bank to abandon its euro cap is fueling speculation the Danish central bank may come under pressure to follow suit, according to Nordea Bank AB.
Investors and traders unfamiliar with Denmark’s three-decades-long history of defending the krone’s peg may be wondering whether policy makers in Copenhagen can support their currency regime after the Swiss dropped their three-year-old cap of 1.20 franc per euro, said Jan Stoerup Nielsen, an economist at Nordea in Copenhagen.