Sweden’s economy contracted in the first quarter as imports surged, masking a gain in consumer spending and a recovery in exports.
The yen weakened from a four-month high against the euro as Bank of Japan Governor Haruhiko Kuroda said the economy was recovering moderately, signaling officials will maintain their stimulus.
Sweden’s Left Party, which polls show may help form a government with the opposition Social Democrats after September elections, said political consensus is growing that the central bank needs a new mandate.
Sweden’s central bank faces a “pretty serious problem” in tackling below-target inflation, Deputy Governor Per Jansson said.
Sweden’s krona strengthened after a report showed retail sales unexpectedly gained, cooling speculation of an interest rate cut in July.
The yen strengthened versus most of its 16 major peers as a private report showing Chinese manufacturing contracted more than economists estimated last month spurred demand for safer assets.
Sweden’s Finance Minister Anders Borg is urging Pfizer Inc. to give up its efforts to take over drugmaker AstraZeneca Plc, arguing the deal would destroy research and development jobs in Europe.