The most expensive euro so far this year – E24

The Easter holiday in Europe may have a taste: the euro is at its highest levels so far this year.

Last week, the krone traded at its weakest levels against both the euro and the dollar since December.

On Tuesday, the value of one euro rose to 11.65 Norwegian kroner, compared to 11.22 Norwegian kroner at the beginning of the year.

The dollar was trading at NOK 10.74, compared to NOK 10.16 at the turn of the year.

These are the weakest krone levels since before Christmas. A weaker krone makes holidays abroad more expensive for Norwegians.

But Norwegians traveling to Berlin, Paris or Split can take comfort that the krone exchange rate was worse last year. When the krone was at its weakest in 2023, one euro cost more than NOK 12, and one dollar cost more than NOK 11.20.

– Good news doesn't seem to affect the krone exchange rate, while bad news does, Nordea's currency strategist Dane Sikov told E24 when the euro reached NOK 12 last year.

He said – I'm scratching my head a little on this one.

weakened over many years

The krone has seen a sharp decline in the past decade:

• Five years ago, one euro was worth 9.65 Norwegian krone, and one dollar was worth 8.53 Norwegian krone.
• Ten years ago, one euro was worth 8.24 Norwegian krone, and one dollar was worth 6.00 Norwegian krone.

Among other things, analysts pointed to global trends as the reason for the weakness. In fact, it is not only the Norwegian krone that has taken a hit in recent years, but also the Swedish krone.

Good for tourism

But a weak krone is an advantage for some industries. Salmon exporters receive, among other things, several kroner for every euro they sell.

The tourism industry can attract more tourists to Norway because they get more money than before.

– In 36 years of working in the tourism industry – with 27 years as PR Director at the Norwegian Tourist Board and Visit Norway USA, this was the first time we had marketed Norway as “cheap”, says Harald Hansen, Special Advisor In Norway visit E24 this fall.

For most people, the depreciation of the krone means not only the increased cost of holidays abroad and higher prices for imported goods. It has also contributed to interest rates in Norway being much higher than experts previously thought, according to analysts.

The key interest rate is now 4.5 per cent, and Norges Bank believes Citizens' mortgage interest rates will peak at around 5.7 per cent on average later this year, before gradually falling.