WSJ.com is available in the following editions and languages:
Thank you for registering.
We sent an email to:
Please click on the link inside the email to complete your registration
Please register to gain free access to WSJ tools.
An account already exists for the email address entered.
Forgot your username or password?
This service is temporary unavailable due to system maintenance. Please try again later.
The username entered is already associated with another account. Please enter a different username
The email address you have entered is already in use.Please re-enter the email address.
Send me information about more WSJ features
Create a profile for me in the Journal Community
Why Register?
Privacy Policy | Terms & Conditions
As a registered user of The Wall Street Journal Online, you will be able to:
Setup and manage your portfolio
Personalize your own news page
Receive and manage newsletters
Receive and manage newsletters
Remember me Forgot your password?
Digg
For years, the Swedish krona has languished in the background. Worthy, but hardly the star of the show.
But as currency players continue to grabble with the fallout from the global financial crisis, as well as the geopolitical tensions sweeping through the Middle East, the krona has come into its own.
Not only has Sweden largely escaped the turmoil of the global crash but the krona is benefiting from being just what other major currencies aren’t.
It doesn’t have the banking and sovereign debt problems that are dogging the euro zone. It doesn’t have the deflation undermining Japan. It doesn’t have the massive fiscal debts and unemployment problems preventing a recovery in the U.S.
Nor does it have a central bank nervous about a strong currency like Switzerland.
In fact, just the opposite. In recent weeks it has become apparent that the Swedish economy remains robust, with GDP growth this year expected to amount to a healthy 7%. Figures Tuesday showed that the economy managed to expand by an even stronger-than-expected 7.3% on the year, in 2010′s fourth quarter.
The Riksbank has already raised interest rates this year to 1.5% and Swedish money markets suggest they could rise as far as 3% by the end of 2011.
However, the Riksbank’s own governor has hinted that even more aggressive increases may be justified. For the krona, this should all be good news.
Unlike its Swiss counterpart, the Riksbank shows little immediate concern about the strength of the krona. If anything, officials suggest that the strength of the currency, which has already risen by 6.5% against the dollar since the start of the year, will help to combat the inflationary impact of higher commodity and crude oil prices.
Yahoo! Buzz
MySpace
Digg
del.icio.us
NewsVine
StumbleUpon
Mixx
Error message
The Source is WSJ.com Europe’s home for rapid-fire analysis of the day’s big business and finance stories. It is edited by Lauren Mills, based in London.
Read Full Article »