Stronger Norwegian krone slashes costs of foreign holidays

foreign currencyIllustrative image of foreign currency.Photo: Jon Olav Nesvold / NTB scanpix

For the first time in nine months, the dollar is under eight kroner. This has meant cheaper holidays abroad than expected.

 

On Tuesday morning, DNB Bank reported that the krone has strengthened 2% against the euro since the beginning of July. Against the dollar, the krone has strengthened almost double that.


Today, the U.S. dollar is worth 7.99 kroner. Not since October last year has the dollar been so low.


This has led to cheaper holidays abroad for Norwegians. A hotel stay for $200 a night, now costs 140 kroner less than it would have in mid-May, reported Nettavisen newspaper. Therefore, a two week holiday in the United States, will save punters 1,820 kroner in accommodation fees at that price range.


The euro has also been weaker against the krone lately. According to figures from Norges Bank, today, it’s worth NOK 9.32, while in June, it was NOK 9.49.


For a long time it was believed that the krone wouldn’t strengthen this summer. In June, a price jump on the euro led to a cost reduction for Norwegians on holiday in countries where the euro is in use. According to Sparebank 1, the price against the euro made a leap from 8.86 kroner in February, to 9.49 kroner in June.


57% of Norwegians have planned to take holidays abroad during the summer months, according to the leading travel organisation, Virke.

© NTB Scanpix / Norway Today

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