Norwegian Krone Rallies with Accelerating Inflation, Retreats
The Norwegian krone rallied today as inflation accelerated more than analysts have expected, reducing incentive for the central bank to cut interest rates. The currency retreated and trades below the opening level as of now.
The Consumer Price Index, adjusted for taxes and energy prices, rose from 0.9 percent in March to 1.5 percent in April on an annual basis. The median forecast was at 1 percent. The gauge advanced 0.6 percent last month from the month before. The krone gained on the news, but retreated below the opening later.
USD/NOK rose from 5.7799 to 5.7990 as of 12:09 GMT today, rallying from the low of 5.7680.
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Earlier News About the Norwegian Krone:
- Inflation in Norway Slows, Leading to Krone's Decline (2013-04-10)
- NOK Drops as Olsen Says Exchange Rate Too High (2013-04-05)
- Norges Bank Sees No Interest Rate Increase Until 2014 (2013-03-14)
- Olsen Speaks About Interest Rate Cut, Krone Down (2013-02-15)
- Norwegian Policy Makers Think Krone Too Strong (2013-01-17)