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Riksbank Tempts Krona Bulls as Comments Suggest Policy Shift

Mixed denomination of Swedish kronor coins are seen in this arranged photograph inside a currency exchange in Malmo, Sweden, on Tuesday, May 14, 2013. Sweden's krona sank after a report showed consumer prices declined more than most economists had predicted.
Photographer: Linus Hook/Bloomberg

The outlook for Sweden’s krona seems to be improving after recent comments by central bankers provided ammunition to currency bulls.

UniCredit SpA recommended buying the krona against a basket of the euro and dollar after Riksbank Governor Stefan Ingves said Wednesday that the central bank is now on target with inflation. His comments are likely to act as a catalyst for further krona strengthening, strategists Kathrin Goretzki and Roberto Mialich wrote in a note.