Krone Intervention Seen Imminent as Limits Tested
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For the first time in more than a year, Denmark’s central bank is close to purchasing kroner in an effort to defend its peg to the euro, according to Danske Bank A/S and Svenska Handelsbanken AB.
The intervention would bring Denmark one step closer to exiting the negative interest rate regime that’s anchored money markets since July 2012. It also follows a depreciation of the krone that’s deeper than in January 2013, when the bank last raised rates.