The Norwegian crown sank to its weakest in more than a decade against the U.S. dollar on Friday, a day after Norway’s central bank unexpectedly cut interest rates and as oil prices slid to a 5-1/2 year low.
The Norges Bank reduced its benchmark rate by 25 points on Thursday to 1.25 percent, the lowest since 2009, and said it could ease policy further due to the impact of lower oil prices on the economy, which relies heavily on oil exports.
Brent crude continued its march lower on Friday, falling to $63 a barrel – around 45 percent down since June.
All of that saw the dollar rise to as high as 7.3451 Norwegian crowns, its strongest since September 2003. The greenback was last trading at 7.3155 crowns, up 0.4 percent on the day.
via CNBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.