Dutch International: Swedish Krona falls due to the Swedish central bank's interest rate hike hint failing to convince the market.

Francesco Pesole of the Dutch International Group stated in a report that the Swedish Krona weakened because the Swedish central bank's statement about the increased probability of a rate hike later this year failed to convince the market. He said that the central bank's decision to maintain interest rates at 1.75% on Thursday and their comments were contradictory to their new inflation forecasts. "Inflation is low and is expected to remain below target levels until 2027, so we continue to predict that the Swedish central bank will not raise interest rates this year." The euro rose 0.2% against the Swedish Krona to 10.8039 after the decision was announced, following a brief drop. The Dutch International Group still expects the euro to reach 10.70 against the Swedish Krona in the second half of the year, supported by lower energy prices and Sweden's stronger growth prospects compared to the eurozone.