Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

Continue Reading

Banks

Basel Committe fail to sign off on latest bank reform measures

Banking regulators have failed to sign off the latest package of global industry reforms, leaving a question mark hanging over bankers who complain they have faced endlessly evolving regulation since the financial crisis. Policymakers had hoped to agree the contentious new measures at a crunch meeting held in Chile this week, but a senior official […]

Continue Reading

Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

Continue Reading

Economy

Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

Continue Reading

Financial

Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

Continue Reading

Categorized | Currencies

Krona rally extends as Riksbank deputy ponders end of QE


Posted on November 24, 2016

Has the krona finally reached a turning point?

The Swedish currency has rallied more than 3 per cent since sinking below SEK10 per euro earlier this month, and is recovering further today after the Riksbank’s deputy governor questioned the value of further rate cuts or bond buying.

At publication time, the krona is up 0.4 per cent at 9.76 per euro, its strongest level since the Riksbank gave an unexpectedly dovish monetary policy update in October.

The central bank has previously shown little sign of bringing an end to its expansionary monetary policy, but deputy governor Martin Flodén said this morning that ending bond buys is a potential option at next month’s policy meeting, according to Reuters.

Mr Flodén, one of the more hawkish members of the Riksbank’s board, said the board had “left the question open for discussion”, adding that it “isn’t obvious” further rate cuts or an extension of the bond-buying programme would help it hit inflation targets.

Record low interest rates have encouraged the krona’s slump to six-year lows, despite many analysts arguing that the currency is undervalued given the underlying strength of the Swedish economy.

Chart: Bloomberg