SEK is one of the currencies of the so-called Scandinavian currencies group, together with the Norwegian krone and the Danish krone. The exchange rate of SEK depends largely on the behavior of the currencies that belong to this group, as well as on these countries’ economies.
Until 1873 riksdaler was the main currency in Sweden after it krona was introduced into the circulation. Also, in the same year, the Scandinavian monetary union was formed. The history of the currency’s name is very simple. The word itself is derived from the word “crown”. The members of the Scandinavian monetary union left the word krona in the names of their currencies even after the union stopped its existence.
On the Swedish krona coin, you will find the king’s portrait depicted on the head side of the coin and the other side you’ll find the Swedish historical coat of arms or an image of the crown. Also, on the coin, you can spot the king’s motto.
Every country depends on its economic factors, and the same applies to this country. Moreover, the currency value is closely connected with the economy. The Swedish krona is very depended on the economic characteristics. Most of the Swedish economy runs on raw materials, to be more precise on iron ore reserves. Also, forest land and forest industry are important factors in the economy of Sweden.
One of the most popular currencies among traders is the Japanese yen. It is the currency that has full power over Japan’s economy. Also, the JPY is the third currency in the reserve currency list. Before the yen entered the circulation, Japan had the clan money in circulation, which means that there were more than a thousand of currencies. Only in the second half of the 19th century, the yen was established as the only currency. Even though the gold standard was introduced and canceled a couple of times, the Japanese monetary unit was initially closely connected to this precious metal.
In 1953, JPY gained the status of an international currency. Besides, the currency was tied with the value of the US dollar until 1971. In terms of a reserve currency, the yen goes second after the US dollar. After some evaluations, the value of this monetary unit increased greatly. In accordance with some of the experts’ data, nowadays the share of JPY in the exchange and gold reserves is around 4%.
The SEK/JPY currency pair on the Forex market
The currency of Sweden is dependent a lot on its neighbors, Norway and Denmark, which is why it is considered to be a commodity currency. All of these currencies have a high degree of correlation. Which is the reason why traders must monitor the changes in the oil prices and trends concerning other currencies. Only if there two factors will be monitored, it will become possible to get the whole picture of the currencies states.
JPY exchange rates depend mostly on supply and demand, which is why this currency is a freely convertible one. This Japanese currency accounts for about 12% of the whole turnover. Most of the actions with JPY are carried out during the Asian trading session. Also, it must be mentioned that the Japanese yen financial quotes are always two characters shorter then the standard ones are.
The SEK/JPY currency pair is called exotic on the Forex market. Moreover, it attracts experienced currency traders with its volatility. A huge number of companies from all over the world cooperate with the Japanese firms, and in order to carry out transactions between themselves, they must acquire the Japanese yen, which is why the currency will always be in trend.
