Norwegian Crown Falls After Central Bank Rate Cut and Oil Drop

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

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza