Swedish krona jumps most in seven months

The Pak Banker - - COMPANIES/BOSS -

Swe­den's krona jumped the most since Jan­uary as traders pared bets on fur­ther in­ter­est rates cuts af­ter a re­port showed in­fla­tion picked up last month.

The krona surged as much as 1.5 per­cent, the big­gest gain since Jan. 22, and was 1.4 per­cent higher at 9.4542 per euro as of 1:15 p.m. in Stock­holm. Con­sumer prices fell an an­nual 0.1 per­cent in July, ac­cord­ing to Sta­tis­tics Swe­den. That was less than than the 0.4 per­cent drop es­ti­mated in a sur­vey of an­a­lysts and the 0.3 per­cent de­cline pre­dicted by the Riks­bank.

Ex­clud­ing changes in in­ter­est costs, the in­fla­tion rate rose to 0.9 per­cent from 0.6 per­cent in June. "The high Swedish in­fla­tion read­ing clearly lessens the need for the Riks­bank to do a lot more at the Septem­ber meet­ing, where ex­pec­ta­tions had been very stretched," said Martin En­lund, an an­a­lyst at Nordea Bank AB, in an e-mail. "It doesn't change the big Riks­bank pic­ture of a cen­tral bank likely need­ing to do more to un­der­pin in­fla­tion.

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