Swedish Krona Could Rise Sharply vs Norwegian Krone if Strait of Hormuz Reopens

1029 GMT - The Swedish krona could appreciate significantly against the Norwegian krone on any agreement to open the Strait of Hormuz, Commerzbank's Michael Pfister says in a note. The Norwegian krone is more affected by falling oil prices as a major energy producer than the Swedish krona is affected by rising prices, given Sweden's relatively low dependence on energy imports. If the Strait opens sustainably, the Norwegian krone will be hit by falling oil prices and the pricing out of interest-rate rise expectations, he says. For the Swedish krona, falling oil prices should offset the correction in rate expectations, he says. The Norwegian krone rises 0.1% to 0.9970 Swedish krona after reaching a 25-day low of 0.9848 overnight, LSEG data show.