Swedish Krona Still on Shaky Ground After Worst Loss Since 2009
- Currency may lose support as housing troubles weigh on economy
- Risk of global trade war could add to krona weakness, ING says
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The Swedish krona’s troubles seem far from over even after its worst slump since the global financial crisis.
Any recovery in the currency is likely to be delayed, in spite of its deepening undervaluation, as a downturn in Sweden’s housing market threatens to weigh on economic growth and inflation, according to Nordea AB and Danske Bank A/S. Seasonal dividend outflows in the coming weeks will also probably fuel krona weakness, SEB AB says.