The Norwegian Krone Exchange Rate was in the region of 0.1353 against the Euro as of 10:56 am GMT
With the meeting of the Group of 20 set to spark significant debate regarding currency wars and exchange rate interference, the Governor of the Norwegian central bank was quick to assert his stance on the issue.
According to Governor Oeystein Olsen, Norges Bank is prepared to take action to lower the Krone if it should prove necessary.
Olsen said that if Krone gains interfere with the inflation target the Norwegian central bank is prepared to make further rate cuts.
During an interview Olsen was quoted as stating: ‘If it gets too strong over time, leading to inflation that’s too low, we will act. I have followed the Krone development, and we always do, but it’s only one part of the overall picture.’
He continued: ‘A pronounced weakening of growth prospects, or a Krone that is too strong, may over time lead to inflation that’s too low. Such a development would be counteracted by monetary policy measures.’
Although Olsen didn’t clarify what level would be considered ‘too strong’ after Olsen’s comments were made public the Norwegian Krone plummeted by 1.4 per cent against the US Dollar, also shedding 0.6 per cent against the Euro.
The government supported Olsen’s position, with Finance Minister Sigbjoern Johnsen pledging that additional pressures wouldn’t be heaped on the central bank by governmental budget policies. Meanwhile, the chief executive officer of the Confederation of Norwegian Enterprise said that Norway’s exporters are dealing with a cost disadvantage mainly caused by gains in the Krone.
The strength of the Krone has brought Norway’s annual underlying inflation to 1.2 per cent, far less than Norges Bank’s target of 2.5 per cent.
To that end Olsen also stated: ‘It’s appropriate to use a few years to bring up inflation. Prices for Norwegian goods have increased considerably more than consumer prices, reflecting the improvement in Norway’s terms of trade. Incomes, output and employment are rising as a solid pace.’
During the ongoing financial crisis Norway, with an AAA rating and significant budget surplus, has been perceived by many as a safe-haven compared to the struggling Eurozone.
Current NOK Exchange Rates
The Norwegian Krone to Pound Sterling exchange rate is currently trading at 0.1162
The Norwegian Krone to Euro exchange rate is currently trading at 0.1353
The Norwegian Krone to US Dollar exchange rate is currently trading at 0.1805
The Norwegian Krone to Australian Dollar exchange rate is currently trading at 0.1767
The Norwegian Krone to New Zealand Dollar exchange rate is currently trading at 0.2121
The Norwegian Krone to Canadian Dollar exchange rate is currently trading at 0.1829
The Norwegian Krone to Emirati Dirham exchange rate is currently trading at 0.6673
The Norwegian Krone to Swiss Franc is currently trading at 0.1662
The Norwegian Krone to Japanese Yen exchange rate is currently trading at 16.9534
These exchange rates were correct as of 10:56 am GMT
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