FOREX-Swedish, Norwegian crowns lifted by rate decisions; Aussie still strong

(Updates prices, adds Riksbank and Norges Bank rates reactions)
* Swedish and Norwegian crowns up vs dollar and euro
* Dollar index down 0.1%
* Australian dollar up 0.3%

By Elizabeth Howcroft
Dec 19 (Reuters) - The dollar was down 0.1% on Thursday,
little changed by U.S. President Donald Trump's impeachment,
while the Swedish and Norwegian crowns both rose slightly
following central bank policy announcements that were in line
with expectations.
The Riksbank became the first central bank to hike its
interest rate to zero, ending five years in negative territory.
The Swedish crown rose briefly on the news and was last up
0.3% against the dollar SEK=D3 and up 0.1% against the euro
EURSEK=D3 .
"The Riksbank is the prime example of a central bank flying
the white flag after years of expansionary monetary policy and
to have thrown in the towel in a state of exasperation,"
Commerzbank FX strategist Ulrich Leuchtmann wrote in a note to
clients.
Fritz Louw, FX strategist at MUFG, said that the rate hike
was interesting because the Swedish financial sector had not
been particularly damaged by Sweden's negative rate policy.
Although Sweden's inflation has risen recently, it is still
below the Riksbank's target. Stephen Gallo, European head of FX strategy, wrote in a note
to clients that he wouldn't treat the Riksbank's decision to
lift its benchmark rate out of negative territory as an accurate
reading of the state of Sweden's economy, or the global economic
situation.
The Norwegian crown was little changed by the Norges Bank
decision to keep rates on hold. It was last up 0.5% at three-month highs versus the dollar
NOK=D3 . Versus the euro it was up 0.3% at a 2-1/2 month high
EURNOK=D3 .
The Australian dollar was up 0.3%, boosted by a surprise
fall in unemployment, which is seen as reducing the likelihood
of further interest rate cuts AUD=D3 . The dollar .DXY was down 0.1% against a basket of
currencies. Trump's impeachment had limited impact on currency
markets. Trump is the third U.S. president to be impeached. The House
of Representatives formally charged him with abuse of power and
obstruction of Congress. The news did not affect risk appetite - the safe-haven
Japanese yen was little changed against the dollar JPY=EBS -
because the Republican-controlled Senate is widely expected to
acquit Trump, leaving him in office.
"It's been relatively priced in that Trump was going to get
impeached in the House," said MUFG's Louw. "If the Senate
doesn't uphold it, I don't think there is any real reason for
the dollar to react massively to it."
The euro was up 0.2% versus the dollar EUR=EBS , possibly
still boosted by data on Wednesday showing Germany's business
morale improving.