Swedish krona falls to 14-year low

Bloomberg

The Swedish krona fell to its lowest level against the euro since 2009 as a downturn in the housing market fueled broader investor concern about the Scandinavian nation’s economy.
The currency sank as much as 0.6% to 11.4434 per euro, taking its drop in the past 12 months to more than 8%. The krona could get some support on Thursday if the Swedish central bank raises its key rate 50 basis points as forecast, though some market watchers say policy makers may move cautiously given the mounting economic strains.
“The path for rate hikes this cycle may be shallower versus other G10 economies,” Goldman Sachs Group Inc. strategists including Praveen Korapaty wrote in a note to clients. “Depending on its view of the skew of the risks to the economy, the Riksbank may have a higher tolerance for inflation versus peers.”
Sweden’s builders warn higher energy prices and rising interest rates are deterring buyers, with home prices falling the most since the 1990s. There are also fears the slump could pose a broader financial-stability risk.