The SEK/USD pairing is a representation of the amount of US dollar (USD) an individual can purchase for one Swedish Krone (SEK) in forex trading.
Factors which have a significant impact on the daily value of USD are wide-ranging, from movement in the global commodity markets through to announcements from important institutions including the US Federal Reserve and the International Monetary Fund.
Conversely, SEK is subject to fewer influences, but these factors have a larger bearing on overall forex performance for the currency.
Launched in 1873 as one the original Scandinavian Monetary Union units, SEK is historically dependent upon the monetary policy being pursued by the government of Sweden at the time.
Having seen a decline in value over recent years, SEK's downturn in forex fortunes can be predominantly attributed to a significant lowering of interest rates by the Riksbank since 2008, with the financial institution failing to act to support the currency against its forex rivals.
Despite Sweden's position as a strong economy in the eurozone, the country has so far rejected any proposals to join the European single currency. In 2003, a Swedish referendum on entry into the euro resulted in 56 per cent of voters opposing a switch from SEK.