The NZD/SEK currency pair hovered above a 1-week low of 5.4910 on Thursday, as the Krone received a boost after the latest Swedish CPI figures.
Sweden’s annual consumer inflation has picked up to its highest level since October 2025 in May, flash data showed. Consumer prices rose 0.8% year-on-year in May, rebounding from a 0.1% drop in April and exceeding the market forecast of a 0.5% rise.
Sweden’s consumer price index with a fixed interest rate (CPIF), Riksbank’s target variable for inflation, went up 1.5% year-on-year in May, again surpassing expectations of a 1.3% increase.
The numbers aligned with the view Riksbank policy makers will likely consider a rate hike after the central bank had recently adopted a more hawkish stance at its previous policy meeting.
In the meantime, the New Zealand Dollar drew support from the RBNZ’s recent policy messaging, limiting downside for the NZD/SEK pair.
Reserve Bank of New Zealand Governor Anna Breman indicated last week that the official cash rate was likely to rise sooner and by a larger amount than previously signaled.
She pointed to inflation pressures linked to the Middle East conflict, softer growth and rising input costs in New Zealand and across its trading partners.
In response, markets have adjusted their expectations for the New Zealand policy path. Pricing now reflects the view that the central bank will deliver multiple rate hikes through early 2027.
The NZD/SEK currency pair was last down 0.38% on the day to trade at 5.4949.
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