Pound up, krona down as central banks take spotlight

London

THE divergent policy outlook for central banks was back at the centre of concern for major currency markets on Wednesday, driving sterling higher, the Swedish krona lower and stymieing action in the euro and dollar.

The yen inched lower to 123.53 yen per dollar after the Bank of Japan trimmed its growth forecasts but gave a balanced and little-changed account of the economic outlook, while traders awaited testimony by the US Federal Reserve's Janet Yellen.