Investing.com – The Danish krone fell after disappointing clinical trial results from Danish pharmaceutical giant Novo Nordisk (NYSE:) A/S. The results have raised concerns about the potential impact on the economy of the Nordic country.
On Friday, the krone was trading at 7.4614 against the euro in Copenhagen, slightly down from 7.4592 before the Novo Nordisk data was released. Despite the depreciation, the krone remained within the range of 7.2925 to 7.6282 against the euro, as set by the central bank to maintain the currency peg. According to market analysts, there were no signs of intervention in the currency market.
The reduction was prompted by data from Novo Nordisk, which revealed that patients using its experimental obesity drug, CagriSema, lost less weight than expected in a study. The news caused Novo's shares to fall as much as 29%, the biggest drop ever recorded, and dragged Denmark's OMXC25 index down more than 5%.
Kristoffer Kjaer Lomholt, head of FX research at Danske Bank (CSE:) A/S noted that the sale of Novo Nordisk contributes to the strengthening of the euro against the Danish krone. He said flows in the corporate sector, including those from pharmaceutical companies, have been particularly important in recent years, particularly with the rise of Novo Nordisk.
Despite the decline, Lomholt pointed out that the size of the market was thin due to the upcoming Christmas holidays and he ensured that there was no immediate need for intervention in the market.
In recent years, the Danish economy has been increasingly dependent on Novo Nordisk.
This article was created with the help of AI and reviewed by an editor. For more information see our T&C.
