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Swedish crown surges after Riksbank sticks to rate hike pledge

Credit: REUTERS/TT NEWS AGENCY

The Swedish crown jumped against the euro and the dollar on Thursday after the Riksbank kept interest rates on hold and stuck to its pledge for a December rate hike.

LONDON, Oct 24 (Reuters) - The Swedish crown jumped against the euro and the dollar on Thursday after the Riksbank kept interest rates on hold and stuck to its pledge for a December rate hike.

Already trading firmer, the crown rose as much as 0.7% versus the euro to 10.6525 EURSEK=D3, its strongest since late September.

Versus the dollar the crown SEK=D3 rallied 0.8% to 9.5640 crowns per dollar, its highest since mid-August, before settling at 9.5730.

The Swedish central bank repeated that its policy rate would be raised to 0% in December, after which the rate would be unchanged for a prolonged period.

However, it said that economic activity was slowing faster than expected. It said a domestic and global slowdown meant the rate path after December had been revised downward.

Some investors had expected the central bank to row back from its rate hiking plans in the face of global economic weakness.

(Reporting by Elizabeth Howcroft Editing by Tommy Wilkes)

((Elizabeth.Howcroft@thomsonreuters.com;))

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