How Norway’s struggling krone compares to other major currencies
Norway’s weak krone means that trips, bills, and mortgage and loan repayments abroad are considerably more expensive than a year ago. So, how does the krone compare to other major currencies?
Norway’s krone is down significantly to other major currencies since the turn of the year and last summer.
Energy and gas prices, higher interest rates abroad than in Norway, and an uncertain financial market all contribute to the weak krone. In the short term, at least, it looks like the krone might continue to struggle following a sharp drop last week.
The euro
Currently (late May), a euro costs 11.82 kroner. This is considerably more expensive compared to the beginning of the year when the same currency would trade for one to 10.49 kroner. In June 2022, a euro cost considerably less at a low of 10.1 kroner.
The bad news for those planning trips to Europe or with student loans or mortgages to repay in the euro is that it will continue to perform strongly against the krone.
“Best case scenario is a euro of around 11.50 kroner. In the worst case, it will come up to 12.50 kroner (for a euro),” currency strategist Dane Cekov told Norwegian broadcaster TV 2.
The pound
Compared to last year, the British pound has increased in strength to the kroner by more than 12 percent. Last year a pound cost 11.86 kroner. This year a pound is worth 13.36 kroner. Last autumn, the pound was considerably weaker against the krone, costing as little as 11.39 kroner.
Over the past five years, the krone has weakened considerably against the pound (despite the pound’s struggles). In July 2018, you would have needed just 10.67 kroner to exchange for one pound.
Readers who work in Norway and are paid in the krone but live in the UK have recently shared with The Local how this long-term downtrend has equated to a pay cut.
The dollar
Thankfully for some, the krone’s weakened strength against the dollar isn’t quite as pronounced as with other currencies. At the beginning of 2023, a dollar cost 9.84 kroner. Since then, the kroner has risen by just over 10 percent to 11.02 percent.
However, compared to 2018, the krone is more than 26 percent less valuable against the dollar. The krone has typically remained strong against the dollar, with the exception of this year and 2020.
The Danish krone
Denmark’s krone is tied to the euro, meaning it (like the euro) has become much stronger compared to the krone. Currently, 100 Danish kroner is worth 159 Norwegian kroner.
September 2022 was a yearly high for the Norwegian krone against Denmark’s currency. Then 100 Danish kroner cost 122 Norwegian kroner. Compared to today’s prices, the Danish krone is 17 percent stronger than the Norwegian krone.
The Swedish krone
Unlike the Danish krone, the Swedish krone isn’t tied to the euro. Furthermore, the Swedish krona has weakened significantly.
Still, the Swedish krona has weakened as much as the Norwegian krone, and Sweden’s currency has leapfrogged Norway’s in value.
Over the past year, the Swedish krona has gone from being less valuable than the Norwegian krone to more valuable as of the spring. Currently, 100 Swedish krona costs 102 Norwegian kroner.
The ten percent swing and food prices rising higher in Sweden than in Norway have led to a reversal in cross-border trade. As a result, fewer Norwegians are heading to Sweden to shop for groceries, and more Swedes are hitting the tills in Norway.
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Norway’s krone is down significantly to other major currencies since the turn of the year and last summer.
Energy and gas prices, higher interest rates abroad than in Norway, and an uncertain financial market all contribute to the weak krone. In the short term, at least, it looks like the krone might continue to struggle following a sharp drop last week.
The euro
Currently (late May), a euro costs 11.82 kroner. This is considerably more expensive compared to the beginning of the year when the same currency would trade for one to 10.49 kroner. In June 2022, a euro cost considerably less at a low of 10.1 kroner.
The bad news for those planning trips to Europe or with student loans or mortgages to repay in the euro is that it will continue to perform strongly against the krone.
“Best case scenario is a euro of around 11.50 kroner. In the worst case, it will come up to 12.50 kroner (for a euro),” currency strategist Dane Cekov told Norwegian broadcaster TV 2.
The pound
Compared to last year, the British pound has increased in strength to the kroner by more than 12 percent. Last year a pound cost 11.86 kroner. This year a pound is worth 13.36 kroner. Last autumn, the pound was considerably weaker against the krone, costing as little as 11.39 kroner.
Over the past five years, the krone has weakened considerably against the pound (despite the pound’s struggles). In July 2018, you would have needed just 10.67 kroner to exchange for one pound.
Readers who work in Norway and are paid in the krone but live in the UK have recently shared with The Local how this long-term downtrend has equated to a pay cut.
The dollar
Thankfully for some, the krone’s weakened strength against the dollar isn’t quite as pronounced as with other currencies. At the beginning of 2023, a dollar cost 9.84 kroner. Since then, the kroner has risen by just over 10 percent to 11.02 percent.
However, compared to 2018, the krone is more than 26 percent less valuable against the dollar. The krone has typically remained strong against the dollar, with the exception of this year and 2020.
The Danish krone
Denmark’s krone is tied to the euro, meaning it (like the euro) has become much stronger compared to the krone. Currently, 100 Danish kroner is worth 159 Norwegian kroner.
September 2022 was a yearly high for the Norwegian krone against Denmark’s currency. Then 100 Danish kroner cost 122 Norwegian kroner. Compared to today’s prices, the Danish krone is 17 percent stronger than the Norwegian krone.
The Swedish krone
Unlike the Danish krone, the Swedish krone isn’t tied to the euro. Furthermore, the Swedish krona has weakened significantly.
Still, the Swedish krona has weakened as much as the Norwegian krone, and Sweden’s currency has leapfrogged Norway’s in value.
Over the past year, the Swedish krona has gone from being less valuable than the Norwegian krone to more valuable as of the spring. Currently, 100 Swedish krona costs 102 Norwegian kroner.
The ten percent swing and food prices rising higher in Sweden than in Norway have led to a reversal in cross-border trade. As a result, fewer Norwegians are heading to Sweden to shop for groceries, and more Swedes are hitting the tills in Norway.
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