Danish Bank: Central Bank May Take Further Action to Support Danish Krone

07/06 09:21

On July 6, August Hyldgaard of the Danish Bank stated in a report that after taking its first action in over three years in June, the Danish central bank may intervene further to support the Danish krone. Data released on Thursday showed that the central bank net purchased 700 million kroner in the market to defend its peg with the euro. Hyldgaard noted that history indicates the central bank will respond to the need for expanded intervention, with the scale of intervention potentially around 50 billion kroner. The Danish Bank expects the central bank to set a short-term euro cap at 7.4758 kroner. Data from the London Stock Exchange Group showed the euro was flat against the Danish krone at 7.4746 kroner, after previously reaching an 11-year high of 7.4759 kroner on June 25.
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