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.
Norwegian Krone NOK
Central Bank: Norges Bank
Interest Rate: 1.50%
Public Debt to GDP Ratio, 2011: 57.5%
Trade Balance, 2011: $73.93 bln.
Inflation, 2011: 1.3%
Major commodity exporter
Factors of Weakness
Dependence on the eurozone
The Norwegian krone is the currency officially used in Norway, while it also used in neighboring countries near the border with Norway. The currency was introduced in 1875 and allowed to float freely in 1992. The exchange rate of the currency depends on prices for crude oil and interest rates. Norway is exporting oil and performance of the krone depends on this commodity.
Norwegian Krone News Archive
May 10th, 2013 at 12:09
April 10th, 2013 at 15:03
The Norwegian krone declined today as slowing growth of consumer prices fueled speculations that the central bank will perform an interest rate cut to boost inflation.
April 05th, 2013 at 2:18
The Norwegian krone weakened today as Norges Bank Governor Oeystein Olsen complained about the high exchange rate and said that the strong currency can prevent an interest rate hike.
March 14th, 2013 at 16:14
The Norwegian krone weakened today after the central bank left interest rates stable and signaled that no change to the monetary policy is expected until the next year.
February 15th, 2013 at 4:28
The Norwegian krone fell today as the head of the central bank indicated that he may ease monetary policy as a measure to bring inflation, which was slowing due to the currency’s strength, closer to the bank’s target.
January 17th, 2013 at 5:47
The Norwegian krone fell a little against the US dollar today and may retreat even further on speculations that policy makers will try to push the exchange rate down. The currency remained firm against the euro.
November 01st, 2012 at 11:35
Sweden was not the only country with declining manufacturing as countries all over Europe suffer from the crisis. Norway’s manufacturing also struggled, but the nation’s currency managed to hold ground, unlike the Swedish one.
October 31st, 2012 at 14:54
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.
August 07th, 2012 at 21:04
The Norwegian krone advanced today after the set of good macroeconomic reports from the country added to the attractiveness of the currency. The attractiveness that was boosted further by the positive sentiment on the Forex market.
June 20th, 2012 at 15:25
The Norwegian krone climbed today after Norway’s central bank left its key policy rate unchanged and signaled that there is a possibility of interest rate hike next year.