The Norwegian krone strengthens

Nok. Norwegian kroneNok.Photo: Berit Roald / NTB scanpix
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Over the course of a week, the Norwegian krone has strengthened significantly as a result of rising oil prices and reduced market risk.

The Norwegian currency was the most strengthened of all the leading currencies that the Bloomberg news agency follows, writes Dagens Næringsliv. Against the euro, the krone strengthened from 10.90 to 10.68 and against the dollar from 10.00 to 9.56.

At its worst during the corona crisis, the euro exchange rate was over 13 kroner and the price of one dollar over 12, writes E24.

Norges Bank has made large purchases of Norwegian kroner, something that DNB Markets says several people have noticed. They also indicate that the perception of risk in the financial market has diminished after the Coronavirus crisis and that oil prices are on the rise.

– “It helps to explain the rise in the krone exchange rate lately, together with Norges Bank buying more kroner when switching from the oil fund to cover the government budget deficit,” says chief economist Bjørn Roger Wilhelmsen in the hedge fund Nordkinn Asset Management to E24.

In addition to the US dollar, Japanese yen and Swiss francs performed the worst against the Norwegian krone last week. All fell between 4 and 6 percent.

© NTB Scanpix / #Norway Today

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