Swedish Krona Depreciates 18% Over Two Decades, Falls to Undervalued Levels on July 8

According to Kit Juckes of Societe Generale, Swedish krona has depreciated 18% in real terms over the past 20 years, though it remains 6% higher than 2023 lows. On July 8, data showed June fixed-rate consumer prices slipped to 1.3%, offering no support for a rate hike by Sweden's central bank. However, May economic growth accelerated to 3.9%, suggesting underlying economic strength despite deflationary pressures from low interest rates.
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