Unexpected growth and development in Sweden drove the nation's monetary unit higher in value on Wednesday, Bloomberg reports.
The Swedish krona achieved the top gain of all major currencies and speculation subsided about the Riksbank dropping interest rates when its officials gather next month to discuss policy. The monetary unit pushed to its top level against the common currency of the European Union on Wedneday in nearly 12 years. The krona also pushed to its highest level in three months against the U.S. dollar.
"The Riksbank may take this as another sign that they won't have to lower rates in September," chief economist Roger Josefsson with Danske Bank A/S in Stockholm told the news source.
Sweden's central bank has not changed its interest rates since earlier this year as the financial institution weighs how strong the krona presently is against the persistent sovereign debt crisis and the likelihood of it causing a recession in Europe.
The strong performance that the monetary has demonstrated as of late is attracting attention that suggest the krona could suffice as a safe haven investment, according to Investment U Research.