The krona rose to its strongest level against the euro since September as economic data suggested Sweden’s recovery is gathering pace and after policy makers made clear they won’t stem the currency’s ascent.
The yen resumed its historic decline as finance chiefs from the world’s developed nations avoided criticizing Japan for allowing the weakening of the currency to gain an unfair competitive advantage in trade.
Sweden’s krona appreciated versus the euro and the dollar as the nation’s government raised its economic growth forecast for the next two years, underpinning the case for the central bank to increase borrowing costs.
Central banks in Sweden and Norway are bowing to pressure to delay interest-rate increases next year as the prospect of a global recovery dwindles and borrowing costs in the U.S. and Europe remain low.
Sweden’s central bank raised its benchmark repurchase rate for the seventh time in a year and repeated a pledge to continue tightening policy as the country’s economic expansion withstands Europe’s debt crisis.