Exchange Rate Calculator

Over the past several months, the exchange rate between the Swedish Krona (SEK) and the Canadian Dollar (CAD) has exhibited notable fluctuations, reflecting a complex interplay of economic factors and market sentiments. This report delves into the recent trends, underlying causes, and potential future movements of the SEK/CAD currency pair.

Recent Exchange Rate Trends

As of June 3, 2025, the SEK/CAD exchange rate stands at approximately 0.1379, indicating that one Swedish Krona is equivalent to 0.1379 Canadian Dollars. (poundsterlinglive.com) This represents a slight increase of 0.01% from the previous day's close.

Over the past year, the SEK/CAD exchange rate has experienced significant volatility. In early January 2025, the rate was around 0.1299, and it reached a peak of 0.1450 on March 11, 2025. (exchangerates.org.uk) This peak was followed by a gradual decline, with the rate stabilizing around 0.1379 in early June 2025.

Factors Influencing the Exchange Rate

Several key factors have contributed to the fluctuations in the SEK/CAD exchange rate:

1. Interest Rate Differentials: The monetary policies of the Swedish Riksbank and the Bank of Canada have played a significant role. Differences in interest rates can attract or repel investors, influencing currency demand. For instance, if the Riksbank raises interest rates while the Bank of Canada maintains or lowers theirs, the SEK may appreciate against the CAD.

2. Economic Indicators: Economic performance indicators such as GDP growth, inflation rates, and employment figures in both Sweden and Canada impact investor confidence and currency valuation. Strong economic data from Sweden can bolster the SEK, while positive Canadian data can strengthen the CAD.

3. Commodity Prices: Canada's economy is heavily reliant on commodities, particularly oil. Fluctuations in global oil prices can affect the CAD's value. A rise in oil prices typically strengthens the CAD, whereas a decline can weaken it.

4. Global Economic Events: Geopolitical tensions, trade agreements, and global economic crises can lead to shifts in investor sentiment, affecting currency exchange rates. For example, a global economic downturn may lead investors to seek safe-haven currencies, impacting the SEK/CAD pair.

Historical Context

Historically, the Swedish Krona and the Norwegian Krone have exhibited a close relationship, often moving in tandem despite differences in their respective economies. This phenomenon has been attributed to factors such as previous negative interest rates in Sweden and the relatively small size of both currencies, which can contribute to their volatility. (ft.com)

Future Outlook

Forecasts for the SEK/CAD exchange rate suggest potential appreciation of the Swedish Krona against the Canadian Dollar. Analysts predict that the rate could increase by approximately 25.75% over the next six months, reaching around 0.1777. Over the next year, the rate is projected to rise by 33.44%, potentially reaching 0.1886. (coincodex.com)

However, it's important to note that currency forecasts are subject to uncertainty due to the dynamic nature of global financial markets. Factors such as changes in monetary policy, economic performance, and unforeseen global events can significantly alter exchange rate trajectories.

Conclusion

The SEK/CAD exchange rate has experienced notable fluctuations over the past year, influenced by a complex interplay of interest rate differentials, economic indicators, commodity prices, and global economic events. While forecasts suggest potential appreciation of the Swedish Krona against the Canadian Dollar, investors should remain vigilant and consider the inherent uncertainties in currency markets.