Swedish Krona Could Gain if Rate Rise Bets Build

Dow Jones07-27

1341 GMT - The Swedish krona could strengthen modestly towards year-end if the prospect of the Riksbank raising interest rates increases, Rabobank's Jane Foley says in a note. Tax cuts for workers, pensioners and corporates along with lower value-added tax on food is currently suppressing inflation but this impact will disappear next year and potentially add pressure on the Riksbank to increase rates, she says. "To promote the perceived risk of Riksbank policy tightening further and to fuel upside potential for the krona, both growth and inflation data for Sweden will likely have to print on the firmer side of market expectations in the coming months." The euro rises 0.1% to 11.0510 krona. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 09:41 ET (13:41 GMT)

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