As late as the end of July, the dollar cost 10.83 kronor, and when the inflation shock was at its worst, the same dollar cost as much as 11.36 kronor.
The interest rate on the US 10-year government bond is simultaneously down to 3.65 percent, one of the lowest levels since May 2023.
The US central bank, the Federal Reserve (Fed), is expected to lower its interest rate on Wednesday after inflation in the US has fallen and a series of unexpectedly weak reports from the US labor market have been released.
Most analysts expect a decrease of 0.25 percentage points. However, many investors, economists at the major bank JP Morgan Chase & Co, and former Fed member William Dudley expect a so-called double decrease of 0.50 percentage points, according to Bloomberg.
The decrease would be the Fed's first in four years. Ahead of the announcement, the Fed's interest rate stands at 5.25-5.50 percent, the highest interest rate level since 2001.
The Fed – like many other central banks – made an unusually rapid series of interest rate hikes in the wake of the inflation shock, with a final hike in July 2023.
This week, interest rate decisions are also expected from, among others, the UK, Japan, and Norway, and next week – on Wednesday, September 25 – the Swedish Central Bank is expected to make what will be its third decrease of the year.
