Swedish Krona (SEK) Exchange Rate Falls against British Pound as Unemployment Rises
The Swedish Krona fell by 0.50% against the British Pound on Monday after data showed that the Nordic nation’s level of unemployment increased more than expected in April.
If you're looking to make an international money transfer, we recommend TorFX.
According to Sweden’s statistics agency, the country’s unemployment rate increased to 8.7% in April, up from the 8.6% recorded in March and was above the 8.5% reading widely expected by economists.
The rise in unemployment will now put pressure on Sweden’s Central Bank the Riksbank to make a cut to interest rates.
The unemployment rate was 0.2% higher than the forecasts made by the Bank.
Economists believe that the Central Bank will cut interest rates to 0.5% in July from the current level of 0.75% in a bid to bolster the economy.
“Unemployment continues to be sticky, driven by a combination of strong population growth and upward trend in labour force participation,” said Olle Holmgren, an analyst at SEB Bank.
Also weighing upon the Krona was the failure of a multi-billion Dollar deal between Sweden and Switzerland.
On Sunday the Swiss allowed a deal to buy fighter jets from Sweden to crash and burn when a majority voted to not provide funding for the deal.
In one of Switzerland’s many referendums, over 53% of voters voted against spending 3.1 billion Swiss Francs on 22 Swedish jet fighters.
“This is sad. We have worked with Switzerland for a long time to find a solution together. It’s a whole new set of circumstances now that Switzerland has said no, and we have to find a new way forward.” said Sweden’s defence minister Karin Enstrom.
According to reports Sweden will now look to Brazil for a buyer as the South American country has expressed interest in purchasing 36 war planes.
The Swedish Krona is currently trading against the British Pound in the region of 0.0902 and is trading against the US Dollar in the region of 0.1517.