LONDON Jan 10 The Norwegian crown
fell sharply on Friday while Sweden's crown
recovered most of this week's losses after data gave
conflicting signals on the strengths of the two Nordic
Norwegian inflation came in well below market consensus,
adding to the case for the central bank to hold off with any
rise in interest rates and pushing the oil-rich country's
currency down around 0.4 percent against the euro and dollar.
Swedish industrial output, by contrast, defied forecasts for
a 2.3 percent annual fall in November and rose 3.5 percent. That
allowed the Swedish crown, hammered after the central bank
appeared to leave the door open to another interest rate cut on
Wednesday, to recoup around 0.5 percent against the euro.
"A rate cut in Sweden could have come from either lower
inflation or a shortfall in growth and the production numbers
seem to have removed one of those risks," said Arne Lohmann
Rasmussen, head of FX research with Danske Bank in Copenhagen.
"The forward-looking surveys in Sweden had been good, but
the hard data like industrial production had lagged and it may
be that this is the turning point."
In Norway, the central bank in early December pushed back
its timeline for a first hike in interest rates by a year,
hoping to boost growth and guide what has been one of Europe's
strongest economies through some unexpected turbulence.
Economists said the data would reduce pressure on the bank
to hike rates and could even give it room to cut if the economy
weakens further. The bank next meets on policy in March.
After falling around 0.4 percent immediately after the data,
by 0940 GMT, the Norwegian crown traded 0.1 percent down on the
day against the euro and dollar at 8.4075 and 6.1827