Norway's krone continues to struggle against other major currencies
The krone continues to fall in value against major currencies such as the US dollar and the British pound. Analysts don't think the situation will change anytime soon.
The seemingly ever-weakening Norwegian krone has been a mainstay in the domestic press for months. In recent days, the krone has been characterised by a marked fall in value against the dollar and pound.
READ MORE: How Norway’s struggling krone compares to other major currencies
On Tuesday, consumers in Norway needed to pay 11.16 kroner for one US dollar, compared to 10.60 kroner just two weeks ago.
Since February this year, the krone has weakened by more than one krone against the dollar, which hasn't been stronger since 2020.
The Norwegian krone has also weakened against the euro in the last two weeks, from around 11.54 kroner to 11.91 today.
Things aren't any better when it comes to the British pound: the krone has weakened sharply against the pound - at the start of April, one pound cost 12.76 kroner. Today, one pound costs 13.74 kroner.
That means that the pound has become almost two kroner more expensive in just one year.
Krone expected to become even weaker against euro
Analysts at DNB Markets believe the krone will be even weaker against the euro one year from now. The bank estimates that, in a year, a euro will cost 12 kroner.
Currency strategist Magne Østnor at DNB Markets thinks that the krone's weakening in recent weeks is due to a market repricing of interest rates, which has led to external expectations spilling over into Norwegian interest rates.
"It has always been extremely important, but given that the krone is now actually among the currencies with the lowest interest rates, it has given a slightly different dynamic when we think about changes in risk sentiment.
"The weakening of the krone that we have seen in recent weeks has come despite the stock market upswing," Østnor told the newspaper DN on Monday.
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The seemingly ever-weakening Norwegian krone has been a mainstay in the domestic press for months. In recent days, the krone has been characterised by a marked fall in value against the dollar and pound.
READ MORE: How Norway’s struggling krone compares to other major currencies
On Tuesday, consumers in Norway needed to pay 11.16 kroner for one US dollar, compared to 10.60 kroner just two weeks ago.
Since February this year, the krone has weakened by more than one krone against the dollar, which hasn't been stronger since 2020.
The Norwegian krone has also weakened against the euro in the last two weeks, from around 11.54 kroner to 11.91 today.
Things aren't any better when it comes to the British pound: the krone has weakened sharply against the pound - at the start of April, one pound cost 12.76 kroner. Today, one pound costs 13.74 kroner.
That means that the pound has become almost two kroner more expensive in just one year.
Krone expected to become even weaker against euro
Analysts at DNB Markets believe the krone will be even weaker against the euro one year from now. The bank estimates that, in a year, a euro will cost 12 kroner.
Currency strategist Magne Østnor at DNB Markets thinks that the krone's weakening in recent weeks is due to a market repricing of interest rates, which has led to external expectations spilling over into Norwegian interest rates.
"It has always been extremely important, but given that the krone is now actually among the currencies with the lowest interest rates, it has given a slightly different dynamic when we think about changes in risk sentiment.
"The weakening of the krone that we have seen in recent weeks has come despite the stock market upswing," Østnor told the newspaper DN on Monday.
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