AMWatch

Danish pension funds stop selling off Danish kroner - currency stabilizes

For a short period, the Danish pension funds increased the pressure on the krone so significantly that the central bank was forced to raise interest rates. The companies' risk hedging of Euro equities played a key role. Nordea Markets does not expect further rate increases, as the equity market has stabilized.

The central bank in Copenhagen | Photo: Jens Dresling/Ritzau Scanpix

The interest rate increase implemented by Denmark's central bank has put an end to the devaluation of the Danish krone compared to the Euro. On Monday, one euro equaled 7.4638 DKK, compared to 7.4735 DKK before the rate increase last week.

According to Nordea Markets global strategist Andreas Steno, currency risk hedging on the pension companies' Eurozone equity played a large role in the pressure on the krone, which led to a rate increase. The 0.15 percent increase apparently happened after a larger intervention.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Nasdaq reports record year in Europe

In 2021, the number of new equity listings on the Nasdaq exchange in Copenhagen broke the old record set in 2007, and in Stockholm, the exchange recorded its highest-ever number of new listings. Nasdaq also had increasing trading volumes last year.

Further reading

Related articles

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch