Swedish Krona Hits 3-year High

The krona (SEK) languishes in G10 early Wednesday after Sweden's Riksbank cut rates by 25bp to 2.0% and signalled another reduction is probable this year, said Societe Generale.

The central bank says that weaker demand in the economy is expected to contribute to inflation being lower going forward than in the most recent forecast, noted SocGen.

The Riksbank lowered the gross domestic product growth forecast for this year by 0.7pp to 1.2%. Estimates for headline consumer price index were lowered by 0.3pp to 0.7% for this year and by 0.2pp to 1.6% for 2026 before returning to 2.1% in 2027.

The path for the policy rate was lowered by 0.2pp to 2.1% for 2025 and by 0.4pp to 1.9% for 2026 and 2027.

faces short-term resistance near the May high of 11.02, wrote the bank in a note to clients. has consistently struggled to overcome the 50dma after fading below in February.

The 9.63/9.65 area is a "crucial" topside hurdle, support is located near 9.37/9.35, added SocGen.

USDSEK decreased to a 12-month low of 9.47.

Over the past 4 weeks, US Dollar Swedish Krona lost 2.44%, and in the last 12 months, it decreased 9.65%.

Societe Generale's early Thursday economic news summary pointed out:

— scales 1.08 handle after 5y5y inflation spikes to 2.22%, 10-year Bund crosses 2.90%. ESTR pricing just over two European Central Bank rate cuts this year after the German infrastructure/defense reset and European Union Re-Arm spending plan.

— The United States delays tariffs on auto imports from Canada/Mexico by one-month and may provide exemption to certain agri-products.

— Day ahead: ECB to cut the discount rate by 25bps to 2.50% and remove "restrictive" reference from statement. EU leaders' summit on defense/Ukraine. Feeral Reserve speakers Harker and Waller. U.S. weekly jobless claims, trade balance. Turkey's central bank (CBT) is forecast by SocGen to cut policy rate by 250bps to 42.50%.

— Sweden's CPIF accelerates to 2.9% year over year in February from 2.2% in January, Riksbank forecast was 2.2%. Core climbs to 3.0% year over year from 2.7%. Central bank next meets on March 20. slumps below 11.0, offered below 10.20.

— Nikkei +0.8%, EUR 10-year IRS +7bps at 2.71%, Brent crude +0.8% at $69.8/barrel, Gold flat at $2,914/oz.

USDSEK increased to a 14-month high of 11.19.

Over the past 4 weeks, US Dollar Swedish Krona gained 2.48%, and in the last 12 months, it increased 9.14%.

USDSEK increased to a 12-month high of 11.06.

Over the past 4 weeks, US Dollar Swedish Krona gained 6.08%, and in the last 12 months, it increased 4.82%.