Trump Makes Swedish Krona Biggest Gainer in Test for Riksbank
- Krona is biggest gainer among G10 currencies since election
- Economic optimism has increased Riksbank’s krona tolerance
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Much has been surprising about the market reaction to Donald Trump’s upset U.S. presidential election win. But that the Swedish krona would be the biggest gainer among the G10 currencies could top the list.
Sweden’s small, export-focused economy -- home to global powers such as clothing retailer H&M AB and Ikea -- would likely be one of the main victims should Trump’s protectionism push harm global trade. So far, investors have ignored that threat, sending the krona higher amid bets U.S. tax cuts and fiscal stimulus will stoke global growth and signals from the Swedish central bank that it’s reaching the end of an unprecedented easing campaign.