Pound Surges Against Krona Amid Energy Crisis and Rate Gap

The pound-to-Swedish krona exchange rate has been on a tear, reaching 13.2344 on Wednesday and extending its rally that began in June.

This surge is largely due to krona weakness rather than pound strength.

The Swedish Krona is currently the worst-performing G10 currency this year, down against every major currency, including a 6.3% drop against the pound, 12.05% against the Norwegian krone, and 7.59% against the US dollar.

Morgan Stanley notes that energy prices are weighing heavily on the krona and reducing investor appetite for lower-yielding currencies.