Experts: Norwegian krone will strengthen – the holidays will become cheaper

The island of Hvar in CroatiaThe island of Hvar in Croatia.Photo: Norway Today Media

Currency Experts predict a further strengthening of the Norwegian krone. This means that vacations now will be cheaper for Norwegians.

The major downturn in the oil industry has affected the Norwegian krone in recent years.

This has resulted in poor exchange rates for Norwegians on holiday. With the new upturn for oil, the krone has strengthened, and yesterday afternoon the euro  was at 8.92 kroner, the dollar at 7.99, the British pound at 10.18 and Swedish hundred kronor at 92.87 kroner.

Aftenposten writes that the currency strategist at DNB Markets Magne Østnor believes the recovery will continue and that the rate of the pound will be at under 10 kroner in spring.

– Yes, the krone will continue to strengthen over time, and this will happen in fits and starts. The krone is still weaker than the outlook for the Norwegian economy would suggest.

We also believe in the long term we see the  exchange rate of the euro decrease to 8.20 kroner  and that of the dollar down to 6.50 kroner, he said.

Senior Analyst Ole Håkon Eek-Nielsen at Nordea Markets also predicts good long-term prospects with the exhange rate of the dollar decreasing to 7.40 kroner per dollar in two years.

– I think we are seeing the start of a fairly significantly stronger krone, but usually this process takes quite a long time, he said.

Among the reasons for this trend is that the outlook for the Norwegian economy has improved, along with the likelihood that Norges Bank will cut the interest rates having diminished.


Source: NTB scanpix / Norway Today