Heavy is the Norwegian crown in risk-averse market

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

It’s the worst-performing G10 currency so far in 2023, hurt by turmoil in the banking sector and a slowdown in central bank rate hikes

The Norwegian crown is the worst-performing G10 currency so far in 2023, hurt by turmoil in the banking sector and a slowdown in central bank rate hikes just as U.S. and European peers raised theirs aggressively, but it may be due a respite.

It has weakened a whopping 10% against the euro this year, adding to a 5% tumble in 2022 as the crown failed to gain traction from a surge in oil and gas revenue last year. Norwegian benchmark interest rates currently stand at 3.0%, compared with 5% in the United States and 3.0% in the euro zone, where the European Central Bank started raising interest rates only in July.

According to a Reuters poll of foreign exchange strategists, the crown will likely rise 6.5% versus the euro within a year, and almost 10% against the U.S. dollar. “NOK should have been a lot stronger last year if its moves reflected the terms of trade,” Nomura’s Jordan Rochester said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines