This is how the crown comes to the bag

The most expensive crown leaves its mark.Image: Martina Holmberg / TT

Since the end of March, the krona has strengthened between 15% and 16% against the dollar, partly as a rebound from a previous weakness, but the Swedish economic rebound coupled with actions from the US Federal Reserve. It has affected the rebound.

For nearly 15 Swedish export giants, the effect will be clear. They can count on full-year earnings to decline on the order of 10 percent or more if the dollar weakens by the same amount, according to an analysis compiled by Danske Bank.

– A stock market with strong exports will lose the strongest crown, says Maria Landeborn, analyst at Danske Bank.

But the stronger exchange rate is also the consequence of an economic recovery, so overall the outlook is relatively good. But it will be a headwind momentum, according to Landeborn. Consequently, there are Swedish publicly traded companies that win on a weaker dollar. On the other hand, it was not long ago that the increasingly expensive dollar had opposite effects, exchange rates go yo-yo over time.

The value of the crown not only affects the profits of the companies, it also affects the price of the shares. A more expensive crown makes Swedish stocks more expensive for foreigners who can therefore stay away. Fewer buyers lower the price of the stock, the price.

– Yes, it can play a role, says Landeborn, but at the same time points out that it provides some protection for foreign acquisitions of Swedish companies.

At the same time, Swedish savers will see many of their foreign funds lose value when the dollar weakens.

What to do if Swedish stock prices come under pressure at the same time as foreign funds lose value?

– It may be a good opportunity to buy cheaper foreign stocks, says Maria Landeborn, who predicts that the crown will strengthen even more in the next six months.