The SEK/NOK currency pair advanced to a fresh 36-week peak of 1.0980 on Wednesday ahead of the outcome of Sweden’s Riksbank and Norges Bank’s policy meetings.
Riksbank is expected to leave its key policy rate intact at 1.75% at its December 18th meeting.
In November, policy makers signaled that borrowing costs would likely remain at this level for some time.
Inflation continues to be above the central bank’s 2% medium-term target. Yet, it has eased broadly in line with the September projection, solidifying the view that the current price pressures are temporary.
Meanwhile, Norges Bank is expected to leave its key policy rate without change at 4% at its December 18th meeting.
In November, the central bank reiterated that in case the economy developed broadly as projected, the policy rate would likely be reduced further next year.
The SEK/NOK currency pair was last up 0.26% on the day to trade at 1.0977.
The exotic Forex pair was on track for its best monthly performance since April, being up 2.54% so far in December.
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