The Norwegian and Swedish krone will increase in strength significantly this year, predicted a group of economists talked to by Reuters news agency.
The economists also predicted last year that the Norwegian krone would strengthen, specifically by 3%. That would have given a price of 8.80 against the euro at the beginning of 2018. The opposite has, in fact, happened.
Last year, the value of the Norwegian krone fell by more than 8% against the euro, and at the turn of the year, 1 euro was worth 9.85 kroner. The Swedish kroner also weakened, contrary to the economists’ predictions of.
‘Both the Swedish and Norwegian kroner are significantly weaker than the very basic factors would suggest,’ said Nordea Bank’s chief analyst, Erik Bruce, to the news agency.
He and other economists Reuters have talked with, therefore, believe that both the Norwegian and Swedish kroner will appreciate significantly in 2018.
The prediction for 2018 is that the Norwegian krone will increase by 5.9% against the dollar, and 5.7% against the euro.
Economists believe the Swedish krone will increase by just over 6% against the dollar, and 4.3% against the euro.
© NTB Scanpix / Norway Today