Denmark Says It Has Tools to Defend Peg After Surprise Cut
Lars Rohde, governor of Denmark's central bank, during a news conference in Copenhagen, Denmark, on Sept. 23, 2014.
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Denmark moved to quash speculation it may follow Switzerland and abandon its euro peg, delivering a surprise interest-rate cut to prevent the krone gaining further.
“We have the necessary tools to defend the peg,” Karsten Biltoft, head of communications at the Copenhagen-based central bank, said by phone. Asked whether Denmark could ever consider abandoning its currency peg, he said, “Of course not.”