Sweden’s economy contracted in the first quarter as imports surged, masking a gain in consumer spending and a recovery in exports.
Swedish household borrowing growth accelerated in November after the central bank cut benchmark rates to support economic growth.
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.
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 krona strengthened after a report showed retail sales unexpectedly gained, cooling speculation of an interest rate cut in July.
Swedish consumer prices dropped for a second consecutive month in December as Europe’s sovereign debt crisis hurt exports and companies cut jobs.