Although the market is still reeling from the Federal Reserve’s shock decision to refrain from tapering stimulus by even the minimum amount expected, US news wasn’t the only thing inspiring currency movement today.
The Norwegian Krone Exchange Rate was in the region of 7.8209 Krone per Euro as of 13:00 GMT
In a comparatively light news day for Europe the Krone has surged by 1.1 per cent against the Euro as Norway’s central banks held the benchmark rate at 1.5 per cent for a ninth month, but intimated that rates will be raised in the first quarter of next year.
Jan F. Qvigstad, deputy Governor of Norges Bank, asserted; ‘The analyses imply a key policy rate at today’s level in the period to summer 2014, followed by a gradual increase to a more normal level’.
Although the majority of economists forecast that Norges Bank would hold rates, the positive indication of future increases saw the Krone also advance on the US Dollar.
Over the last year Norwegian policy makers have expressed concerns regarding the Krone’s strength, struggling exports, declining growth and inflation woes. But, last month underlying inflation jumped to 2.5 per cent – on target for the first time in four years.
According to analyst Erik Bruce; ‘The Krone is weaker, inflation is higher, expected rates abroad are higher, so all those things pulled up but Norges Bank had turned much more pessimistic on the growth outlook. So significant change in its outlook on the economy, that’s the main reason why they didn’t revise up the interest rate forecast more despite very high inflation figures.’
However, despite today’s show of strength, the Krone could weaken against the Euro tomorrow if Eurozone consumer confidence figures show the improvement expected and support the common currency. Industry experts have predicted that the gauge of sentiment for the 17-nation currency bloc increased from -15.6 per cent in August to -14.5 per cent in September.
Current Exchange Rates:
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The Norwegian Krone/Pound Sterling Exchange Rate is currently in the region of: 0.1076 >
The Norwegian Krone/Euro Exchange Rate is currently in the region of: 0.1277 >
The Norwegian Krone/ US Dollar Exchange Rate is currently in the region of: 0.1734 >
The Pound Sterling/ Norwegian Krone Exchange Rate is currently in the region of: 9.2741 <
The Euro/Norwegian Krone Exchange Rate is currently in the region of: 7.8209 <
The US Dollar/Norwegian Krone Exchange Rate is currently in the region of: 5.8141 <
The Australian Dollar/Norwegian Krone Exchange Rate is currently in the region of: 5.5335 >
(Correct as of 13:00 GMT)
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