AGL 37.93 Decreased By ▼ -0.09 (-0.24%)
AIRLINK 212.50 Increased By ▲ 15.14 (7.67%)
BOP 9.74 Increased By ▲ 0.20 (2.1%)
CNERGY 6.46 Increased By ▲ 0.55 (9.31%)
DCL 9.21 Increased By ▲ 0.39 (4.42%)
DFML 37.60 Increased By ▲ 1.86 (5.2%)
DGKC 99.20 Increased By ▲ 2.34 (2.42%)
FCCL 35.81 Increased By ▲ 0.56 (1.59%)
FFBL 88.94 Increased By ▲ 6.64 (8.07%)
FFL 14.30 Increased By ▲ 1.13 (8.58%)
HUBC 130.99 Increased By ▲ 3.44 (2.7%)
HUMNL 13.75 Increased By ▲ 0.25 (1.85%)
KEL 5.53 Increased By ▲ 0.21 (3.95%)
KOSM 7.26 Increased By ▲ 0.26 (3.71%)
MLCF 45.69 Increased By ▲ 0.99 (2.21%)
NBP 61.00 Decreased By ▼ -0.42 (-0.68%)
OGDC 222.50 Increased By ▲ 7.83 (3.65%)
PAEL 41.00 Increased By ▲ 2.21 (5.7%)
PIBTL 8.48 Increased By ▲ 0.23 (2.79%)
PPL 200.50 Increased By ▲ 7.42 (3.84%)
PRL 39.87 Increased By ▲ 1.21 (3.13%)
PTC 27.61 Increased By ▲ 1.81 (7.02%)
SEARL 109.35 Increased By ▲ 5.75 (5.55%)
TELE 8.65 Increased By ▲ 0.35 (4.22%)
TOMCL 36.35 Increased By ▲ 1.35 (3.86%)
TPLP 13.71 Increased By ▲ 0.41 (3.08%)
TREET 24.38 Increased By ▲ 2.22 (10.02%)
TRG 61.15 Increased By ▲ 5.56 (10%)
UNITY 34.15 Increased By ▲ 1.18 (3.58%)
WTL 1.68 Increased By ▲ 0.08 (5%)
BR100 12,101 Increased By 374.7 (3.2%)
BR30 37,671 Increased By 1294.1 (3.56%)
KSE100 112,981 Increased By 3467.5 (3.17%)
KSE30 35,689 Increased By 1175.5 (3.41%)

The currencies of Sweden and Norway will make large gains against the dollar over the next 12 months and more moderate advances when compared to the euro, according to recent Reuters poll forecast. Both countries' central banks raised key policy interest rates last year for the first time since 2011. They plan to do so again later this year, although recent global economic uncertainty may temper the urge to hike.
Both the Swedish and Norwegian crowns underperformed expectations in 2018, weakening against the bigger global currencies amid trade tensions after analysts predicted a year ago they would rise. Norway has seen its currency fall sharply against the euro in recent months, in step with the declining price of crude oil, the country's main export. But that may be about to change, brokers at Danske Bank said.
The Norwegian economy should sustain above-trend growth due to high oil and infrastructure investments, as well as rising wages, while prospects for more expensive crude and hikes in interest rates will drive the crown, they added. "We expect the krone to strengthen significantly in 2019," Danske concluded on Jan. 4, predicting a 7 percent rally to 9.10 crowns per euro by the end of the year.
The Swedish crown has already strengthened during the autumn, and analysts thus see smaller gains ahead compared to those of its neighbour. Sweden's general election in September delivered a hung parliament and no clear path to the formation of a viable government. While political turmoil has yet to impact the economy, Sweden may face a snap election in April, Danske said.
The poll predicted Norway's currency will strengthen 4.8 percent in the next 12 months to 9.30 against the euro, while Sweden's crown will strengthen 3.2 percent to 9.90, the Reuters poll of nearly 40 economists predicted. Against the dollar, the Norwegian crown is expected to strengthen 9.1 percent to 7.75 in the next 12 months, while the Swedish currency is expected to rise 7.8 percent to 8.23.

Copyright Reuters, 2019

Comments

Comments are closed.