The step-up in interventions by Denmark’s Nationalbank (DNB) to strengthen the krone in January puts to bed the idea that the Bank is comfortable with allowing the krone to trade in a more symmetric band. But while the chances of a unilateral rate hike by the DNB have risen, it is only likely to be a matter of time before looser policy by the ECB helps to relieve some downward pressure on the krone.
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