Pressure on the Danish krone and interest rates - interest rates lurk

Danish krona traded at 7.4316 against the euro. The pressure on the Danish krone has been stable since late March, and now the crown is so strong that it can force Danmarks Nationalbank to a small rate cut.

"The krone is only a mulehår from the level at 743.10 against the euro in december last beat National Bank to raise interest rates down," says Jacob Graven, chief economist at Sydbank.

Initially, the National Bank to sell dollars on foreign exchange market, where the crown will be further strengthened, but if the upward pressure on the crown continues, the next move being a rate cut of probably 0.1 percentage points, estimates Sydbank.

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In this case, the Nationalbank's lending rate coming down to a record low of 0.6 percent, while National Bank's interest rate on certificates of deposit (1 week deposit) will reach 0.2 percent.

"National Bank's deposit rate will thus come as close to zero, negative deposit rate for the first time ever within reach," says Jacob grave.

Also the yield on Danish government bonds falls. The yield on the 30-year government bond drops by 3 basis points to 1.976 percent. the lowest interest rate on the 30-.årige bond is from 17 May when the rate was down 1.973 percent.