The Swedish krona fell in the report showed that manufacturing contracted in Sweden last month, reinforcing the view that the central bank could cut interest rates.
The manufacturing index fell to 48.7 from 50.1 in August Swedbank in July, while the average forecast was 49.8. A reading below 50.0 indicates decreased. That was the first decline in two years.
The adverse report agree that the Swedish economy is too week to support the current level of borrowing costs, let alone to survive further adjustment. According to Credit Suisse rates the central bank cut interest rates in the next 12 months.
USD/SEK jumped from 6.3377 to 6.4127. The currency pair has recovered somewhat today, trading at about 6.3936 as of 1:45 GMT.
The Swedish krona fell today in front of all his comrades negotiated the government cut its growth forecast for the economy, spurring speculation the central bank will not be able to increase lending rates.
Sweden cut its forecast for growth this year of 4.6 percent to 4.1 percent. The forecast for next year fell 3.8 percent to 1.3 percent. The Riksbank will announce its decision on interest rates after the meeting on 7 September.
The OMX Stockholm 30 Index, the nation's index of key shares, fell 0.4 percent. The index has fallen 13 percent this month. Arne Lohmann Rasmussen, chief currency analyst at Danske Bank A / S, said the pension fund can sell the crown after the decline of populations, so an "excellent buying opportunity."
USD/SEK climbed from 6.2926 to 6.3524 as of 21:57 GMT today. The currency pair reached the high of 6.3883 during the trading session.
