Danes told to convert euros ahead of fall
Scandinavia's biggest bank is advising corporate clients to convert euro cash flows into kroner as soon as possible as the risk of a sudden appreciation of Denmark's currency grows.
Though Nordea doesn't expect a repeat of the speculative attack against Denmark's euro peg that sent the central bank into crisis mode earlier this year, the prospect of more stimulus from the European Central Bank next week nonetheless looks set to cause considerable pressure on the krone.
Nordea is now urging clients to convert their euros into kroner before the ECB's December 3 meeting, according to Niels Christensen, chief currency strategist at the bank in Copenhagen. Denmark has defended its fixed-exchange-rate regime for more than three decades and only adjusts rates to defend the krone's peg to the euro. (Bloomberg)