A Housing Crash Takes Down the Krona and Sounds Inflation Alarm
- Swedish currency tumbles to its weakest vs euro since 2009
- Trader bets suggest Riksbank’s in a ‘trap’ before meeting: ING
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The worst housing-market crash and the fastest inflation since the 1990s are turning Sweden into an early victim of the global tightening cycle — driving its currency to an almost 14-year low as policy makers walk the line between saving an overleveraged economy and taming price growth.
The krona sank as much as 0.6% to 11.4434 per euro on Monday, its weakest level since March 2009. Though the currency later pared the drop, it’s still down almost 8% in the past 12 months.