LONDON—The Swedish crown weakened sharply on Wednesday after the country’s central bank was less hawkish than expected, while the euro rebounded from losses a day earlier when jitters about the U.S. banking sector helped the safe-haven dollar.
The euro rose as much as 1.05 percent against the crown to 11.426, set for its biggest one-day gain since early March. The dollar, which traded down 0.7 percent against the crown before the Riksbank’s decision, was steady at 10.305 crowns.
Sweden’s central bank raised its policy rate by half a percentage point to 3.50 percent in line with market forecasts, and said it expected a further hike at its meeting in June or in September, but two deputy governors voted for a smaller hike….