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A variety of articles have analyzed the rising strength of the Swedish krona (SEK)<\/a> to point of exhaustion. A key aspect emphasized, though \u2013 as is usual in this global economic environment \u2013 is caution. But is caution warranted when it comes to Sweden?<\/p>\n <\/span>Let\u2019s evaluate the claim.<\/p>\n Sweden\u2019s krona is rising at a more-than-healthy rate. The USD\/SEK<\/a> has moved from 8.1311 last June to as low as 6.3614 today. The EUR\/SEK<\/a> witnessed a similar price movement from as high as 10.2695 in November 2009 to today\u2019s current price of 8.8760.<\/p>\n The fear with this rising strength comes when viewing Sweden\u2019s concurrent economic growth, which rose 7.3% year-on-year in Q4 2010. Analysts have been forecasting a gouging effect<\/a> from the rising SEK, which will eventually pull down on Swedish exports and dampening growth.<\/p>\n This claim was made starting from late-2010, but has yet to bear any signs of occurring as expected.<\/p>\n In fact, Sweden\u2019s economic growth appears dissonant with what is happening elsewhere in the world. As the Wall Street Journal recently pointed out<\/a>, Sweden doesn\u2019t face many of the same problems as other global economies. Sweden faces no sovereign debt crisis like Europe; no deflationary fears like Japan; no unemployment or budgetary problems like the United States; nor fears of an over-strengthened currency by its central bank, like Switzerland.<\/p>\n