Krone price, currency | The Norwegian krone is strengthening

Krone price, currency |  The Norwegian krone is strengthening

Netavisen reported on Wednesday that the exchange rate of the Norwegian krone rose significantly.

Aside from two days at the start of the Corona pandemic, the common European currency has never cost Norwegians more than it has this year.

But the trend has changed now.

On Wednesday, the krone reached NOK 11.35 against the euro, the strongest since mid-August. On Thursday the number is 11.30.

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For Norwegians, a higher value of the krone means that vacationing abroad will be cheaper, and goods purchased abroad will be cheaper. The downside is that Norwegian goods will become somewhat less competitive.

Dane Sikov, chief strategist at Nordea Markets, highlighted last week’s interest rate meeting on Wednesday, where the central bank, Norges Bank, raised interest rates and at the same time announced another rate hike in the near future, which is positive for the krone exchange. an average.

– The krone exchange rate was supported by a rise in the interest rate spread after Norges Bank announced a higher peak for interest rates. This is the essence, he told Netavicin.

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Refers to foreign actors

Last week, the Riksbank announced the sale of another $8 billion and €2 billion in exchange for the Swedish krona over a period of between four and six months. vs. E24 Utters Sikov said on Thursday that he believes this is one of the factors why the Norwegian krone is now strengthening.

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As a result, the strength of the Swedish krona strengthened in a short time, and foreign players believe that the Norwegian and Swedish krona are one and the same, says Sikov.

The Swedish krona has so far fallen from 11.85 to about 11.60 against the euro.

– This means that many players will exit their bets for that krone. It also comes from the fact that both Norges Bank and Riksbank were In his meetings last week, he says so.

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Strong oil jump

Speaking to Nettavisen, Sekok also pointed out that another factor in the strengthening krone is that oil has seen a sharp jump recently and is now at one of the highest levels for a long time, which Norwegian motorists have noticed in the form of more expensive gasoline and diesel.

He explained that higher energy prices and a more positive interest rate differential between the krone and euro exchange rates have contributed to the strength of the Norwegian krone.

He said that the price of oil reached its highest levels since November last year at $95 per barrel.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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