Swedish krona jumps most in seven months
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.