Foreign currency exchange rates: Increased Swedish krone strength leading to reduced costs for overseas travel
The Swedish krona (SEK) has experienced a notable strengthening against various currencies this year, providing a boost to Swedish tourists looking to travel abroad.
According to data, the SEK has appreciated by approximately +2.65% against the euro in 2025, reaching highs around 0.09306 EUR per SEK in early April. This is a significant improvement from the lows near 0.0867 EUR early in the year. Against the US dollar (USD), the SEK has shown some volatility but overall a slight strengthening trend, with USD/SEK rates moving from highs over 11.5 SEK per USD early in 2025 down to closer to 9.5–9.7 SEK per USD more recently.
Frida Bratt, a savings expert from Nordnet bank, has analyzed the performance of the krona this year compared to other currencies worldwide. She notes that the increased purchasing power of travellers paid in Swedish kronor is roughly equivalent to the relative percentage disparity, adjusted for inflation, in the majority of countries. However, it's important to consider inflationary effects when evaluating the impact of the strengthening Swedish krona on the prices of goods and services in foreign countries.
With a stronger krona versus the euro, Swedish tourists traveling to Eurozone countries benefit from increased purchasing power, effectively making travel and expenses in these countries cheaper compared to earlier in the year. Similarly, the krona's appreciation against the US dollar means Swedish travelers visiting the US would find costs relatively lower than when the krona was weaker, improving affordability.
The krona's strengthening trend can encourage more outbound tourism from Sweden, as stronger currency means better value for travelers abroad. However, foreign tourists visiting Sweden might find it more expensive because their home currencies (e.g., USD, EUR) now buy fewer krona, potentially impacting inbound tourism negatively.
Christina Nyman, Handelsbanken's chief economist, suggested in March that the Swedish economy might be in a better position than many other countries' economies as a possible reason for the krona's rise. Sweden's strong public finances are a likely contributing factor to the krona's rise, as noted by Christina Nyman. Additionally, Sweden has been able to cut its interest rate to what is considered a neutral level before most other countries because inflation has dropped, according to Christina Nyman.
In conclusion, the improved value of the Swedish krona this year has likely made foreign travel more affordable for Swedish tourists, especially to Eurozone countries and the US, enhancing their travel budgets. However, it's important to consider inflationary effects when evaluating the impact of the strengthening Swedish krona on the prices of goods and services in foreign countries.
The strengthening Swedish krona against both the euro and the US dollar, as mentioned, could foster growth in the finance and business sectors within Sweden, as the increased value of the krona may encourage outbound tourism. Consequently, the financial and business industries could benefit from an influx of foreign revenue, owing to the boost from increased Swedish tourism.
