Danish Krone (DKK)

Denmark — Danmarks Nationalbank

Danish krone — pegged to the euro within ERM II under one of the world's longest-running currency arrangements.

FX Session:
London
DKK/USD
0.15657
DKK/USD Exchange Rate
Economic Indicators
Indicator Latest Previous Change Date
Policy Rate 1.6 — — 2025-06-06
Inflation 1.6 1.8 -0.20 2025-05-31
Gdp 755.189 773.211 -18.02 2025-06-30
Unemployment 0.0 0.66 -0.66 2025-05-31
Trade Balance 104.78 105.47 -0.69 2025-05-31
Ppi 8.8 9.1 -0.30 2025-05-31
Danmarks Nationalbank Press Releases

About the Danish Krone (DKK)

The Danish krone (DKK) is the official currency of Denmark. Since 1999 it has participated in the European Exchange Rate Mechanism II (ERM II), maintaining a central rate of 7.46038 DKK per euro within a narrow ±2.25% band.

Danmarks Nationalbank: monetary policy framework

Danmarks Nationalbank does not pursue an independent inflation target. Its primary objective is to keep EUR/DKK close to the central parity, achieved through matching the ECB's policy moves and intervening in the FX market when needed.

What moves the DKK?

  • EUR/DKK position relative to the 7.46038 central rate.
  • ECB policy-rate decisions, which Danmarks Nationalbank typically follows.
  • Danmarks Nationalbank FX reserves (a proxy for intervention).
  • Spread between Danish and German short-term rates.
  • Periodic stress in the krone peg around large flow events.

Key data and events to watch

  • Danmarks Nationalbank certificate-of-deposit (CD) rate.
  • EUR/DKK spot near the 7.46 central rate.
  • Monthly FX reserve disclosures.
  • ECB monetary policy decisions.
  • Danish CPI and labour-market data.

Frequently asked questions about the Danish Krone

Is the Danish krone pegged to the euro?
Yes. Denmark participates in ERM II with a central rate of 7.46038 DKK per euro and a ±2.25% band, although in practice Danmarks Nationalbank keeps EUR/DKK in a much tighter range.
Why didn't Denmark join the euro?
Denmark negotiated an opt-out from euro adoption in the 1992 Maastricht Treaty after voters rejected the treaty in a referendum. A second euro referendum in 2000 also rejected adoption.
How does Danmarks Nationalbank defend the peg?
It primarily uses unilateral interest-rate moves — adjusting the certificate-of-deposit rate independently of the ECB if necessary — and FX-market intervention from its reserves. In stressed episodes it has introduced negative rates and capped CD volumes.
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