Swedish Krona posts gains due to rising inflation
The Swedish krona appreciated against the US dollar on October 13, 2015. Sweden’s inflation levels exceeded the expectations. The Swedish krona has been on an appreciating trend through October. The PMI (purchasing managers’ index) and industrial production also helped the currency rise. The higher inflation came amid the anticipation of muted growth. The domestic currency has been exhibiting appreciation against the US dollar. To learn more, read Swedish Krona Rises October 5 on Positive Macroeconomic Data.
Consumer inflation exceeds expectations
In Sweden, consumer inflation rose by 0.1% in September on an annual basis—compared to a fall of 0.2% in the previous month. The figures exceeded the expectation of a fall of 0.1% in September. Sweden has been undergoing deflationary growth in consumer prices over the last three months on a YoY (year-over-year) basis. Also, on a monthly basis, consumer prices rose by 0.4% in September—compared to expectations of 0.3% and a deflationary figure of 0.2% in August.
Impact on the market
The Swedish ADR (American depositary receipt), LM Ericsson Telephone Company (ERIC) was trading in a negative trajectory. It ended the day 1.9% lower. Among other Swedish ADRs, Statoil ASA (STO) fell 2.1%, while fisheries major Marine Harvest (MHG) rose 0.2%.