Norwegian Krone Falls on Trader Minister’s Comments
The Norwegian krone slumped after the country’s trade minister said that the strong currency is hurting Norway’s exporters, causing traders to speculate about possible intervention.
Trond Giske, Norway’s Minister of Trade and Industry, said:
It is our concern because the export industries are hurting from the strong krone. We are following the situation closely.
Giske also added:
Those exporters that are both hurting from the strong krone and falling markets in Europe, those are the ones we are most worried about.
These comments followed earlier statement of Oeystein Olsen, central bank’s Governor, that the strong currency is detrimental for the nation’s economy. Such talks resemble the words of Swiss and Japanese officials before they performed interventions. Does it mean that Norway will also intervene? Some investors have certainly thought so, triggering the sell-off.
USD/NOK jumped from 5.5864 to close at 5.6974 and EUR/NOK climbed from 7.4798 to the closing price of 7.4883.
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Earlier News About the Norwegian Krone:
- Will Norges Bank Stop Cutting Interest Rates? Traders Hope So, NOK Rallies (2012-03-08)
- Norway Krone Gains, Central Bank Ready for Intervention? (2012-02-15)
- Rate Cut Sends Norwegian Krone Lower (2011-12-14)
- Norway Krone Falls as Central Bank Intervenes (2011-11-01)
- Norwegian Krone Benefits from Anticipation of Higher Rates (2011-05-12)