Banks Bet Speculators Are Wrong as Denmark Weakens Krone
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Denmark’s biggest bank predicts Governor Lars Rohde will cut the benchmark deposit rate far enough below zero today to drive the krone down and speculators away.
After a week of fielding calls from hedge funds asking whether Denmark will follow Switzerland and abandon its euro peg, Danske Bank A/S says the central bank’s actions today will probably put a stop to the noise. Sydbank A/S and Jyske Bank A/S also predict a 10 basis-point cut in the deposit rate to minus 0.3 percent today.