How strong is the krona?
So far this year, the krona has strengthened 19.40 percent against the dollar, which is an increase from 17.79 percent just one week ago.
The krona has risen 5.2 percent against the euro so far this year, 11.7 percent against the pound and 11.03 percent against the Australian dollar.
It is the best-performing currency among the G10 countries.
G10 stands for Group of Ten, despite being a group of eleven countries. It is made up of Sweden, Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Switzerland, the United Kingdom, and the United States, with all countries collaborating on financial matters of global importance.
The Swedish krona has risen 14.4 percent against the Canadian Dollar and 4.69 percent against the Swiss Franc. It’s also gone up by 26.25 percent against the Indian Rupee.
Why has the Swedish krona strengthened so much this year?
The krona was close to a historic low at the start of this year, due in part to high inflation and low growth. At the same time, economists in Sweden and abroad said it was undervalued, and were forecasting a rise to take place around the latter half of 2024.
In July 2024, the IMF rated it the world’s most undervalued currency.
Over the past year the Riksbank, Sweden’s central bank, has slashed interest rates and the economy has started to pick up, which has all helped fuel the krona's rise.
How likely is it that this will continue into 2026?
According to Bloomberg, quite likely.
“Sweden’s krona looks set for a strong 2026 after beating all major currencies this year, as the country’s economy is enjoying a renaissance,” the news agency wrote in an article in December 2025, where it described the krona’s performance as Sweden’s “best rally in decades”.
Major financial actors like Bank of America and JP Morgan agree that the krona will continue to strengthen next year, Bloomberg writes, but at a slower pace.
A projected increase in European defence spending is also expected to further boost the krona – shares at major Swedish defence company Saab have more than doubled in 2025 so far.
It’s unlikely that the krona will see the same rise in 2026 as it saw in 2025 – if only because it will be starting the year off relatively strong – but Bloomberg predicts a rise of around 2 percent throughout 2026.
What does this mean for foreigners in Sweden?
It depends. If the majority of your salary and savings are in kronor, then this is good news, especially if you have a lot of expenses in other currencies, as your kronor will stretch further than they did at the beginning of the year.
If, however, you have a foreign salary and sizeable savings in another currency, and lots of Swedish expenses, then this is bad news for you, as your Swedish expenses will consume a larger portion of your paycheck.
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