Oil-Exporter Currencies Suffer

Norway’s krone slid to its weakest since March 2009, leading losses by currencies of oil-exporting nations including Russia and Canada, after crude prices fell to their lowest in three years.

The Canadian currency slipped to a five-year low against its U.S. counterpart as Saudi Arabia cut the price of oil exports to American customers. The euro fell to its weakest in two years versus the Swiss franc even as it rose against most of its major peers amid speculation the European Central Bank won’t announce additional stimulus after it meets Nov. 6. New Zealand’s and Australia’s currencies rallied as the Australian central bank held its benchmark rate unchanged.

Canada’s dollar “is the currency under pressure here, that’s been the obvious loser, and the Norwegian krone as well,” said Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas SA. “It has put those currencies on the defensive even though we think the underlying fundamentals are relatively robust, especially in Norway.”

Bloomberg

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