Europe’s Rearmament Prompts Traders to Bet on Swedish Krona

  • Swedish currency was the top G-10 performer on Monday
  • Defense industry plays an outsized role in country’s exports

Sweden’s krona is emerging as a favored way to bet on Europe’s race to rearm.

The currency surged more than 2% against the dollar on Monday, outperforming its G-10 peers after European leaders pushed forward with plans to boost defense spending and support Ukraine.