Danmarks Nationalbank intervened in FX markets for the second time since June to
support the weak Danish krone, net buying DKK5.6bn ($870m) in August, its FX,
liquidity and monthly balance sheet report said. The krone has slid to record
lows versus the euro since the currency's 1999 launch, touching 7.4761 DKK per
euro on Aug. 7. Continued exchange-rate pressure could force the central bank to
raise borrowing costs, though several analysts say their baseline does not
expect imminent rate action. Danmarks Nationalbank ordinarily follows ECB rate
moves but could set policy independently if FX intervention proves insufficient
to stabilize the currency.
