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Danish crown falls after Denmark's cuts rates again

LONDON, Jan 29 (Reuters) – The Danish crown fell to a day’s low against the euro on Thursday after Denmark’s central bank took interest rates deeper into negative territory to ward off upward pressure on the currency.

The central bank lowered the certificate of deposit rate to a record low of -0.5 percent, from -0.35 percent, and said the rate cut followed intervention in the currency market.

This was the third rate cut in two weeks, broadly a response to the European Central Bank’s decision to embark on one-trillion-euro worth of additional stimulus for the euro zone economy.

In afternoon trade, the crown weakened to 7.4452 crowns per euro from 7.4440 before the rate cut, before recovering to trade at 7.4438.

Traders said the central bank has been intervening in the past few days after buying 6.9 billion crowns ($ 1.1 billion) in the market between September and November 2014.

An intervention often precedes a rate cut in Denmark.

(Reporting by Anirban Nag; editing by Patrick Graham)

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