Danish Krone at Five-Year Low Raises Odds of Central Bank Action

A weakening of the Danish krone to its lowest level since 2020 may force the country’s central bank to step in to defend the currency’s peg to the euro, economists said.

The krone’s slide has brought it to thresholds that in the past have prompted Nationalbanken to prop up the currency through foreign-exchange interventions. The currency is trading at levels last seen at the onset of the pandemic, reaching a low of 7.4700 per euro on Friday.