Krone Rises as Norges Bank Does Not Plan to Buy Foreign Currency
The Norwegian krone climbed today as Norway’s central bank indicated that it is not going to buy foreign currency for the government fund. On the negative side, unemployment growth stalled in August.
Norges Bank has increased the size of the petrobuffer portfolio considerably through 2012 for covering the transfers towards the end of the year. These changes have reduced Norges Bank’s need to purchase foreign exchange in the market.
The petrobuffer is earnings from oil exports converted in foreign currency that is invested overseas as a measure to prevent overheating of the Norwegian economy.
The unemployment rate was at 3.1 percent in August, according to Statistics Norway, higher than analysts’ estimates. The employment rate, on the other hand, went down from 69.5 percent in May to 69.2 percent in August.
USD/NOK fell from 5.7306 to 5.7016 and EUR/NOK was down from 7.4283 to 7.3968 as of 13:54 GMT today.
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Earlier News About the Norwegian Krone:
- Positive Fundamentals in Norway Benefit Krone (2012-08-07)
- NOK Rises as Norges Bank Signals Rate Hikes are Possible in 2013 (2012-06-20)
- Norwegian Krone Rises, Defies Olsen (2012-03-16)
- Norges Bank Unexpectedly Cuts Interest Rates, Krone Slumps (2012-03-15)
- Norwegian Krone Falls on Trader Minister's Comments (2012-03-10)