Krona Slides as Sweden Joins Global Wave of Monetary Dovishness
- Currency reaches weakest level since August 2018 versus euro
- Riksbank delays rate-increase prospect, extends bond purchases
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Sweden just jumped on the bandwagon of countries driving down their currencies with dovish policy pullbacks.
The krona plunged more than 1 percent against the euro Thursday as the Riksbank extended its bond-purchase program and signaled interest rates will stay below zero for longer than previously indicated. The Swedish central bank’s move echoes similar action by global peers -- the Bank of Canada abandoned its tightening bias this week after the European Central Bank, Bank of Korea and Reserve Bank of Australia flagged growth risks earlier this month.