SEK is still trading at levels that remain too low – Commerzbank
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Antje Praefcke, FX Analyst at Commerzbank, believes that the Swedish Krona is undervalued and expects the Riksbank to intervene in case of further SEK weakness.
“In my view SEK is still trading at levels that remain too low, as the Riksbank took a hawkish decision in February. Everything all told it proved that it is decisive in its fight against inflation.”
“I would like to warn all those who are bashing SEK a little too much, as the Riksbank has already mentioned the weak Krona as an additional risk for inflation and considers it to be under-valued.”
“I do not want to exclude that in case of further SEK weakness the Riksbank might adopt a tougher tone regarding the exchange rate or even intervene on the FX market. I for my case would not be surprised in case of interventions. Many others might be.”
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