In the latest development, Scandinavian crown currencies have emerged as star performers, outperforming the US dollar by 16.74% in 2025. The Swedish crown is up 15%, delivering its best-ever performance against the USD in over 50 years. Norway’s crown is also up 13% against the greenback, its highest since 2008.
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Not just the US dollar, the Swedish crown is up 4.5% against the euro and Norway’s crown surged 2% against the euro. Both the US dollar and the euro are losing their ‘crown’ to the Scandinavian currencies this year. Institutional funds are mostly moving abroad as clients perceive the US markets as volatile due to recent policy changes.
US Dollar Loses to ‘Crown’ Currencies in 2025
The crown (krona) is an English translation of the Scandinavian currencies used in Sweden, Norway, and Denmark. It is also used in the Faroe Islands, Greenland, Iceland, and the Czech Republic. Sweden is expected to cut interest rates this month and the move could bolster the crown further vs the US dollar.
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The US dollar has slipped to its lowest in three years as the DXY index touched the 97 to 98 range. Leading local currencies are strengthening in the charts as the USD is slipping in the currency markets. The USD is no longer considered a safe haven as the interest has turned solidly into gold.
Kit Juckes, the Chief FX Strategist at Societe Generale revealed that institutional funds are selling the USD this year. “There’s clearly solid dollar selling,” he said to Reuters. To make things worse, the US dollar is down nearly 10% against a basket of leading currencies this year, including the crown.
The financial sector is experiencing a rapid change after Trump imposed sweeping tariffs on 185 countries in early April. Though the tariffs are paused for 90 days until July, many countries are scrambling to safeguard their economies. If the White House does not manage things, the Scandinavian crown could surge further against the US dollar.