The USD/SEK currency pair hovered above a fresh 2-week low of 9.5361 on Wednesday ahead of the outcome of the Federal Reserve’s and Sweden’s Riksbank policy meetings.

The Fed is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% at its May 6th-7th meeting.

The minutes of the FOMC meeting in March showed that policy makers expected inflation would be pushed higher this year because of the impact of elevated tariffs, though they acknowledged considerable uncertainty over the magnitude and persistence of these effects.

Investors will also be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of any future interest rate cuts.

Meanwhile, Riksbank is expected to leave its key policy rate intact at 2.25% at its May 8th meeting.

In March, policy makers said they expected inflation would remain above the 2% target for the rest of 2025 before stabilizing near that level in 2026. Riksbank said it remained ready to adjust policy in case inflation deviates.

At the same time, economic recovery remained on track, underpinned by rising real wages, lower interest expenses and higher defense and government spending.

The USD/SEK currency pair was last up 0.46% on the day to trade at 9.6070.