Over the last month, only the MXN has outperformed the SEK versus both the USD and EUR. Economists at CIBC Capital Markets expect the Krona to continue strengthening over the coming months.

Riksbank to tighten by a further 50 bps in April

“In the context of elevated core prices, we would expect the Riksbank to tighten by a further 50 bps at their 26 April meeting.”

“We note that the hawkish central bank is now intent on encouraging a stronger SEK as an offset to policy adjustment; remember the SEK was the worst-performing major through 2022.”

“The combination of a hawkish central bank intent on boosting the currency looks set to extend a more constructive SEK bias through upcoming quarters.”

“Q2 2023: 10.75 | Q3 2023: 10.60 (EUR/SEK)”