Investing.com - Sveriges Riksbank, Sweden's central bank, lowered its benchmark interest rate further into negative territory on Wednesday, as policymakers increase efforts to ward off deflation from taking hold in the largest Nordic economy.
The Riksbank said it was lowering the benchmark interest rate by 15 basis points to -0.25% from -0.10%.
In addition, the central bank said it will purchase government bonds for a sum of SEK30 billion and that it is prepared to do more at short notice.
Following the announcement, the Krona plunged against the U.S. dollar, with USD/SEK rising 1.08% to trade at 8.7788, compared to 8.6549 ahead of the decision.
The Krona was also down sharply against the euro, with EUR/SEK jumping 0.98% to hit 9.2935 from around 9.1748 earlier.