(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.
Denmark’s central bank bought kroner for a second month in a row to prop up the currency and support its peg to the euro.
The Copenhagen-based bank said Tuesday it sold 1.2 billion kroner ($180 million) worth of foreign currency in so-called interventions last month. Reserves fell by 1.9 billion kroner to 440.7 billion kroner at the end of November.
The krone has been trading on the weak side of parity since September, when the European Central Bank cut its benchmark rate.
The amount that Denmark has spent on interventions remains “limited,” Jan Storup Nielsen, an economist at Nordea, said in a note. “Against this background, we do not see this as an early warning of an independent Danish rate hike.”
Economists say central bank fixing rate data shows that the krone hit its lowest point ever against the euro last month.
Denmark’s central bank has an agreement with the European Central Bank to keep the krone within a 2.25% band around a rate of 7.46038 per euro, although in practice it sticks to a much tighter range. It last lowered its main rate in September, bringing it to minus 0.75%.
(Adds quote from economist in fourth paragraph)
To contact the reporter on this story: Nick Rigillo in Copenhagen at firstname.lastname@example.org
To contact the editor responsible for this story: Christian Wienberg at email@example.com
©2019 Bloomberg L.P.