The Swedish krona strengthened against the U.S. dollar in the early European session on Wednesday, after the Sweden's Riksbank kept its Repo rate unchanged to a record low of -0.25 percent.

The Executive Board of the Riksbank decided to purchase government bonds for a further SEK 40-50 billion and left the key rate unexpectedly at -0.25 percent but signaled further reduction.

Riksbank was expected to cut its rate to -0.35 percent today. The bank last reduced it in March by 15 basis points after taking it to negative zone in February.

Against the greenback, the krona rose to nearly a 5-week high of 8.4304 from an early low of 8.5353. At yesterday's close, the krona was trading at 8.5133 against the greenback.

If the krona extends its uptrend, it is likely to find resistance around the 8.24 area.

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