It has been a long time since the euro cost NOK 10, but it may seem that we are moving in the right direction. The krone has cost almost up to 12 euros recently, and in just one day it has fallen by over 20 øre.
Yesterday, the euro stood at DKK 11.96. Today, just a day later, it costs DKK 11.74.
The dollar has also fallen considerably in the last 24 hours. One dollar cost NOK 11.14 on Tuesday afternoon. On Wednesday afternoon, the price is NOK 10.82, a strengthening of the krone by as much as 33 øre.
If it continues in this direction, it may look bright for Norwegians who want a cheaper holiday trip in Europe and the USA.
21 øre in a day
On Tuesday, the euro cost NOK 11.96. It was the second highest rate in the last 30 days.
On Wednesday, the price is just NOK 11.74, while the dollar is “only” NOK 10.81.
Dane Cekov, currency strategist at Nordea Markets, tells Nettavisen that the reason for this development has to do with the good news that came on Tuesday afternoon from the USA. There, price growth appears to be soon under control, and the central bank can put interest rate hikes on hold.
– I would not say that the euro has weakened. The krone has strengthened against the euro. The krona is very exposed to fluctuations in the financial market, when there is a good mood, as it was yesterday, it is not surprising, Cekov tells Nettavisen.
also read
Good news for your wallet: – Pleasantly surprising
The good news from the USA
Price growth in the US for October came in at 3.2 per cent, while it was expected to be higher.
This is good news for the Norwegian krone, and shows how much the krone is affected by the international market.
Considering the good news from the US, Cekov is not surprised that the price of the euro has fallen so much in a short time.
also read
Extreme tension in the financial market: The krone with a dramatic fall
– The dollar has weakened in light of yesterday’s inflation in the US. We can imagine that in 2025 interest rates will be as high in the USA as in Norway now, Cekov tells Nettavisen.
It is clear, according to Cekov, that the Norwegian krone is largely controlled by the market internationally, and especially how things are going in the USA. Now that the dollar has weakened somewhat from yesterday’s inflation figures, the krone has strengthened in response. This is also the reason why the euro costs less on Tuesday than on Wednesday.
also read
Cuts the price of monthly passes in Oslo
Good news for next year
Cekov is optimistic about next year’s krone exchange rate. He does not believe that it will strengthen as much as the time when one euro cost less than eight kroner, but the development will be in the right direction.
– It will fluctuate a lot in the coming months, but I think the krone will come down to 11.50 for one euro, Cekov tells Nettavisen.
By next year, we can expect the price of the euro to be closer to NOK 11 than NOK 12. Cekov is optimistic and believes that we could see the 10s during 2025 or 2026.
– If we look at the longer term, we will come below 11, somewhere between 10 and 11, but then we are talking further into the future. Then they must first be sure that inflation is at 2 per cent, and that will take time, Cekov tells Nettavisen.
2023-11-15 11:44:20
#Good #news #Norwegians #krone #track
