The dollar went up against the Swedish krona on Wednesday after the Riksbank of Sweden cut interest rates. It was the second major central bank this cycle to do so.
The Riksbank of Sweden lowered its key interest rate by a quarter point to 3.75%. This is the first time in eight years that the rate has been lowered, and the bank said it will do so twice more in the second half of the year if the outlook for inflation stays the same.

Markets had priced in some of a rate cut ahead of time, but not all of it. ING said that they thought there would be 57 basis points of cuts by September.
Inflation fell to 2.2% in March, which was less than what the central bank thought it would be. Swedish GDP growth is also expected to be “weak” in the first quarter.
The Riksbank said that monetary policy can be loosened when inflation is close to the target and the economy is not doing well.
The Riksbank has cut interest rates along with the Swiss National Bank. It is expected that the European Central Bank will do the same next month. A string of high inflation readings has pushed back the date when people think the Federal Reserve will cut interest rates.
It went up from 10.8646 Swedish krona on Tuesday to 10.9237 Swedish krona today. The euro EURSEK, 0.41% also went up against the Swedish krona.
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