Norway News

All eyes may be focused on the US and the publication of the highly influential US non-farm payrolls report, but other events have also had an impact on the currency market today. For example, the Norwegian Krone tumbled against the Euro as domestic industrial production dropped in October. The level of industrial output in Norway fell by 7.5 per cent in October following a decline of 1.4 per cent in September. Economists had envisaged a decline of 3.3 per cent. Although the steep decline was partially offset by annual...

During European trading Norges Bank’s decision to leave rates unaltered in the face of weak inflation helped the Krone advance on the several of its most traded peers. The Norwegian currency advanced on the Euro and US Dollar as the central bank restated its commitment to keeping interest rates low until mid-2014. In a statement accompanying the decision Norges Bank Governor Oystein Olsen commented; ‘Inflation in September was lower than expected, but at the same time the [Krone] has depreciated since the previous monetary...

With interest rate concerns heating up in both Sweden and Norway, the Nordic country’s currencies have clashed. During European trading the Norwegian Krone sank to an almost nine-year low against its Swedish rival, weakening to 1.0712 Swedish Krona. The last time the NOK/SEK pairing was at this level was in the spring of 2004. The Krone has been trapped in a bearish relationship with several of its peers since data published earlier in the week showed that the Norwegian economy grew by considerably less than anticipated in...

For the first time in several days Turkey’s Lira weakened against the US Dollar. The Lira fell to 1.9497 against the US Dollar after Fitch Ratings, one of the top three ratings agencies, intimated that Turkey could be in line for a rate cut given the extended period of social unrest the country has experienced. Back in November Turkey’s credit rating was raised, but Fitch has stated today that situation could be reversed because: ‘prolonged social unrest, poorly handled, could deter tourism, exacerbate short-term capital...

The Krone advanced to 7.6536 Krone per Euro this morning in response to assertions that Norway is prepared to increase stimulus if the slowdown in the Eurozone continues to have a negative impact on the nation’s growth. Norway’s Finance Minister Sigbjoern Johnsen recently stated: ‘To be faithful now, in a more turbulent situation, the framework of economic policy is vital, I would say, for the Norwegian economy going forward. We are vigilant in Norway. We will also try to adapt policy measures should there be any signs of...

Although some industry experts have expressed concern that the Krona’s newfound strength will make Sweden less competitive than its major trading partners, others have argued that the currency’s rise is not placing the nation’s economic growth in danger. As the financial crisis in the Eurozone has bounced from issue to issue the Krona has attracted investors looking for a safer asset. The Krona has also benefited from projections which outline the Swedish economy rebounding, as it recovers from a decline in exports which saw...

Over the past four years the Krone has strengthened by more than 20 per cent against the Euro, and Norway’s central bank is finding it increasingly difficult to conduct fiscal policy as a result. Inflation has lingered below the Norwegian central bank’s target rate of 2.5 per cent since 2009 due to the Krone’s rise, and in light of the ongoing Eurozone crisis the damage to exporters is growing. In 2012 Norway’s exports experienced growth of 2.9 per cent. The nation’s central bank is estimating that that figure will drop...