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Local Norway
30-04-2025
- Business
- Local Norway
New forecast suggests the Norwegian krone will make up ground on the US dollar
Bank SEB forecasted that both the Norwegian krone and Swedish krona would strengthen against the dollar over the next year. The bank expects one dollar to be worth 9.42 Norwegian kroner by the end of June 2026. The last time the krone was as strong against the dollar was in early 2022 before it strengthened considerably against the Norwegian krone. It is also expected that the euro will be worth around 11.40 kroner by June of next year. A euro has typically traded for considerably more than this over the past year. 'The question is whether this is the beginning of a long-term structural reversal with a 'sell America' theme, as trust in US politics and institutions has eroded,' the analysis said of the expected strengthening. Interest rate and currency strategist Nils Kristian Knudsen at Handelsbanken told the business and financial E24 that a recent dip in the dollar against the krone may not reverse. Advertisement 'It is starting to gain some traction, in the sense that the market accepts that the fall in the dollar we have had is here to stay,' he said. He added that the krone strengthening or weakening against the euro would have a more significant impact on consumers in Norway than changes between the krone and the dollar.
Local Norway
18-03-2025
- Business
- Local Norway
Why Norway's krone has strengthened against the US dollar
The Norwegian krone has made a strong recovery from a recent slump against the US dollar . A dollar was trading for 10.52 kroner on Tuesday, compared to 11.47 kroner in January. Norwegian economists have pointed to two reasons why the krone has made up ground on the dollar. Firstly, the dollar has weakened due to uncertainty surrounding growth in the US. Secondly, fears of a tariff war between Europe and the US have created uncertainty and strengthened the krone against the dollar and the euro. Chief economist at Eika Gruppen, Jan Ludvig Andreassen, said that the Norwegian krone looked attractive to investors as it currently appeared that Norway wouldn't be hit as hard as other countries when it came to tariffs. 'It looks very reliable that you put money in Norwegian kroner if you are in Singapore, Dubai or Tokyo,' he told Norwegian business and financial site E24 . Furthermore, higher-than-forecast inflation figures have led to a higher forecasted interest rate path. As a result, a number of economists have predicted that the planned interest rate cut in March will be postponed and that there would be between two to three cuts in Norway in 2025. Advertisement This makes the Norwegian krone a lot more attractive to investors and boosts Norway's currency. 'It moves us into a category where interest rates will be higher for longer. That you can hold a little more kroner relative to other currencies,' Nils Kristian Knudsen, interest rate and currency strategist at Handelsbanken, told E24. Bank HSBC recently forecasted that the Norwegian krone was poised to recover some ground on the euro and US dollar following a turbulent few years in which it has struggled against most major currencies. 'We believe the balance of risks is now shifting towards a recovery for the Norwegian krone,' Charlotte Ong, European currency strategist at HSBC, said. Other analysts also forecasted the Norwegian krone increasing against the dollar in the medium and longer term. READ ALSO: Analysts predict Norway's krone could make up lost ground on the euro and US dollar
