The Swedish Krona gained ground against the U.S. dollar during the European session on Tuesday, after Sweden's central bank kept its repo rate unchanged but does not rule out a rate cut later to stimulate demand and support inflation in the recovery phase.

The executive board of Riksbank left its main rate at zero, as expected.

he central bank said it will continue purchases of government and mortgage bonds up until the end of September 2020. The bank will buy securities up to SEK 300 billion this year.

The central bank said it is prepared to continue to use the tools at its disposal.

The Swedish Krona appreciated to near a 2-week high of 9.9350 versus the greenback from Monday's closing value of 10.0010. The currency may challenge resistance around the 9.0 level.

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