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Currency War Plagues Denmark as Central Bankers Run Out of Tools

  • Krone as strong as during Jan. 2015 speculative attack on peg
  • Danske Bank sees little scope for central bank to cut rates
Updated on

Denmark’s krone is now trading at levels not seen since the run-up to the country’s worst currency crisis this century.

On Jan. 15, 2015, currency speculators attacked Switzerland, then Denmark. Switzerland famously resorted to a free float. Denmark, perhaps less famously, prevailed after throwing everything it had at those betting against the krone’s peg to the euro.