Investing.com – The Danish krone fell following disappointing clinical trial results from Danish pharmaceutical giant Novo Nordisk (NYSE:) A/S. The results raised concerns about the potential impact on the Nordic country’s economy.
On Friday, the krona/euro exchange rate in Copenhagen was 7.4614, slightly down from 7.4592 before the Novo Nordisk data. Despite the decline, the krona remained within a range of 7.2925 to 7.6282 against the euro, set by the central bank to maintain the currency peg. According to market analysts, there was no indication of intervention on the currency market.
The decline comes as data from Novo Nordisk showed that patients taking its experimental obesity drug CagriSema lost less weight than the study predicted. The news sent Novo’s shares down as much as 29%, their biggest decline ever, and dragged Denmark’s benchmark OMXC25 index down by more than 5%.
Kristoffer Kjaer Lomholt, head of the company’s currency research department Danski Bank (CSE:) A/S noted that the Novo Nordisk sale is contributing to the strengthening of the euro against the Danish krone. He added that flows in the corporate sector, including pharmaceutical companies, have become very crucial in recent years, especially with the creation of Novo Nordisk.
Despite the decline, Lomholt stressed that market volumes are low due to the upcoming Christmas holidays and assured that there is no immediate need for intervention in the market.
In recent years, the Danish economy has increasingly relied on Novo Nordisk.
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