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Given Trump’s trade protectionist stance, if he does win the White House, it may pose a threat to global free trade, leaving smaller open economies such as Sweden vulnerable to damage, the Netherlands analysts at International Group said, noting that although the Swedish krona has been the second-worst performing currency among the G10 currencies this year, after the pound, from its current exchange rate, market pricing has not fully reflected this factor. .
The reason why the Swedish krona will suffer is that Sweden is the second most open economy in the G10, after Switzerland. said R, chief FX strategist for Europe, the Middle East and Africa (M) at ING in London. While currencies like the Mexican peso and Canadian dollar would be among the worst performers if Trump were elected, markets are already pricing in that factor, he said.
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