Société Générale: Swedish krona is undervalued after recent decline

Golden Ten Data reported on July 8 that Kit Juckes of Société Générale stated that with low interest rates continuing to weigh on the currency, the Swedish krona appears undervalued. "Measured by the real effective exchange rate, the Swedish krona is up 6% from its 2023 low, but over the past 20 years, it has depreciated by 18% in real terms." Data on Wednesday showed that the fixed-rate Consumer Price Index (CPI) fell back to 1.3% in June, which does not support a rate hike by the Swedish central bank. However, economic growth accelerated to 3.9% in May. He noted that Sweden's strong economic performance compared to the eurozone could attract capital inflows and ultimately impact inflation.