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Danish central bank: no change to euro peg, can react to conditions
[COPENHAGEN] There is no change planned to Denmark's fixed exchange rate policy and the central bank has the necessary tools to react "at any given moment" to keep the crown currency stable against the euro, a central bank spokesman said on Tuesday.
The comments came a day after the bank cut interest rates to weaken the crown. That followed the abandonment last week of the Swiss franc's cap to the euro, which had raised speculation that Denmark could follow suit.
"We have the necessary instruments in the form of interest rate changes and intervention to maintain the fixed exchange rate and we at all times look at market conditions and determine what to do," central bank spokesman Karsten Biltoft said.
"We have the tools to react at any given moment."