Not too late to sell the Swedish krona
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Since December 31, 2004 the Swedish krona has depreciated by nearly 5% against the euro, with the biggest fall occurring when the Riksbank cut rates by 50 basis points in June 2005. This event precipitated an extreme short rate focus for the SEK, with both the EUR/SEK and short rate spread between Sweden and the eurozone subsequently very closely correlated (see chart). Consequently, accurate exchange rate forecasts have depended most importantly on a clear understanding of ECB and Riksbank
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