Krona Surges as Swedish GDP Growth Rises More Than Forecast

(Bloomberg) -- The krona strengthened the most in four weeks against the euro after Sweden’s economic growth accelerated more than forecast in the second quarter of the year.

The currency headed for a monthly gain as gross domestic product rose 1 percent in the three months through June, compared with the median forecast for 0.5 percent growth forecast by economists in a Bloomberg survey.

“The growth data confirms that weakness at the start of the year was transitory,” said Manuel Oliveri, a currency strategist at Credit Agricole CIB. “The latest data should add to the case of Riksbank considering higher rates by the year-end.”

The krona strengthened as much as 0.7 percent to 10.2313 per euro. The Swedish currency has advanced 2.1 percent this month, the best performance among the Group-of-10 exchange rates.

Credit Agricole’s Oliveri said that policy differentials should move “in favor of EUR/SEK downside.”

To contact the reporter on this story: Anooja Debnath in London at adebnath@bloomberg.net

To contact the editor responsible for this story: Ven Ram at vram1@bloomberg.net

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