Danish central bank raises key interest rate

The increase in the lending rate would support the Danish krone against the euro and would take effect immediately, Danmarks Nationalbank said.

The Danish central bank, which usually mirrors the moves of the European Central Bank, wants to keep the krone stable against the euro. Higher interest rates tend to support a country's currency since they attract investors seeking better yields.

"There has been a weakening of the Danish krone, and in accordance with the fixed-exchange-rate policy Danmarks Nationalbank has intervened to support the krone," the bank said.

European Union member Denmark is not part of the 15-nation euro zone.

The discount rate remained unchanged at 4 percent, the bank said in a statement.

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