Danish central bank warns over pressure on krone - paper

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LONDON | Mon Jun 18, 2012 12:56am BST

LONDON (Reuters) - Denmark's central bank chief Nils Bernstein has warned that the Danish krone is coming under intense pressure from investors seeking a safe haven in Europe, the Financial Times reported on Monday.

Investors are also betting that the crisis could crack the peg the currency has had to the euro since 1999, the paper said.

The FT quoted Bernstein as saying that the pressure was the most severe he had seen in his seven years as governor, and that the bank was ready to move to negative interest rates if necessary.

Rates are at a current record low of 0.45 percent in Denmark.

(Reporting by Rosalba O'Brien; Editing by Vicki Allen)

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