US Dollar / Swedish krona - USD/SEK

A member of the European Union since 1995, Sweden has the peculiarity to have kept its national currency, the Swedish krona (SEK), whereas in theory (and according to the law- via the Maastricht Treaty) Sweden had to join the Euro area and whereas the performances of its economy could widely allow it.

In somuch as the Swedish krona is still floating in relation to the Euro like in relation to the American Dollar (USD), we could expect the USD/SEK fluctuations to be quite dependent on the combination of the fluctuations EUR/USD and EUR/SEK

But it is not the case according to the privileged trade relation of Sweden with all the Euro area countries, and we have observed for 10 years a correlation between the evolution of the EUR/USD cross and the one of the USD/SEK cross (even if the variations have to be taken on the inverse sense; correlation EUR/USD and SEK/USD).

More precisely, the great trends of the fluctuations EUR/USD seems to be followed and amplified on the SEK/USD cross, more punctual movements (like the “yo-yo” aspect of the fluctuations of the EUR/USD cross during the Fall of 2008 and during the first trimester of 2009) are less followed.

Listing at 10.8479 in July 2001, the exchange rate USD/SEK remains stable until April 2002 (USD/SEK = 10.2375 in April 2002).

A 40% decrease happens until December 2004, and the Swedish krona appreciates with the same value against the dollar (USD/SEK = 6.0789 in December 2004).

A new appreciation of the dollar intervenes in 2005 in parallel with the appreciation of the dollar against the Euro (USD/SEK = 8.1657 in November 2005), then like against the euro we see a continuous depreciation movement of the dollar until the summer of 2008; the USD/SEK cross lists at 6.0323 in July 2008.

After, the increase of the dollar is more evident and continuous against the Swedish krona than against the euro, the USD/SEK cross appreciates by 52% in six months, to list at 9.1907 in March 2009.

The adjustment that is nearly as important (and it faithfully reproduces the EUR/USD adjustment), since the exchange value USD/SEK = 6.7879 is reached by mid-October 2009.