(The online newspaper): The Norwegian krone continues to strengthen: On Monday, one euro costs NOK 11.38, while you have to pay 10.42 for one dollar.
Last week you had to pay 11.84 for one euro and 10.96 for one dollar.
Senior strategist Dane Cekov at DNB Markets tells Nettavisen that this is solely due to Norges Bank raising the key interest rate to 4.5 per cent.
– Norges Bank went against the flow, and we see that it has given the krone a tailwind, says Cekov.
He believes this will continue in the coming weeks.
– We expect the euro down to 11 blank and the dollar down to 10 blank, but the market can play tricks on us, he says.
– Good news for all of us
– So who is this good news for, just a week before Christmas Eve?
– This is good news for anyone planning a trip abroad and of course for imports. It also makes it less likely that Norges Bank will raise interest rates again. So this is brilliant for all of us, says the expert
DNB Markets estimated just after the interest rate decision that the chance of another interest rate jump in March was 20 per cent.
– But there can also be news that weakens the krone, we have to be prepared for that, says Cekov.
He praises Norges Bank for doing what they can to strengthen the krone:
– They wanted to surprise the market, and the news hit like a bomb.
– Unsure
Chief economist Kyrre Knudsen at SR-Bank is more cautious about predicting the future.
– Now we have seen a tremendous strengthening in a short time. What awaits when the “shock waves” calm down, I am more uncertain, he admits.
– It is a bit difficult to interpret Norges Bank.
– How much can the krone strengthen in the future?
– I am still in the thinking box. In the longer term – in one to two years, however, we believe that the euro will be in the 10s and the dollar down to the 9s.
Knudsen has no faith in more interest rate jumps in 2024 and refers to Norges Bank’s own assessment, which suggests a possible interest rate cut in June.
2023-12-18 16:27:10
#Caught #surprise #crown #skyrocketing
