TEHRAN, Young Journalists Club (YJC) - The dollar struggled against its rivals on Monday, especially against the Scandinavian currencies, as some investors took profits after a strong rally in recent weeks although strong U.S. data kept the pressure on emerging market currencies.
Against a basket of its rivals, the dollar was broadly flat at 95.36 .DXY after rising 0.23 percent last week, its biggest rise in three weeks.
Its losses were more pronounced against the Swedish crown and the Norwegian crown against which it lost 0.1 and 0.6 percent respectively.
The Swedish crown SEK=D3 strengthened after gains for the nationalist and anti-immigration party Sweden Democrats party were smaller than some polls had predicted.
A big negative driver for the Swedish crown before the election has been hedging activity against a strong showing by the Sweden Democrats, but the outcome avoided the worst of the market’s fears even as the nation headed for a hung parliament.
“Sweden’s election has left political gridlock in its wake, but the Sweden Democrats party made less progress than some had expected and that has triggered a relief rally,” said Kit Juckes, a strategist at London’s Societe Generale.
The Norwegian crown NOK=D3 surged after August inflation data firmed expectations for a central bank rate hike next week.