Dollar Falls to Five-Year Low. Norwegian Krone on Investors’ Radar
The Norwegian krone is attracting increasing attention from foreign investors. Jan Ludvig Andreassen, chief economist at Eika Gruppen, believes that capital is seeking protection in Norway from uncertainty in the US and Europe. At the same time, he predicts that the dollar may fall below NOK 9 before Christmas.
The Norwegian krone gains on the weakness of the US dollar.
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In the first half of September 2026, the dollar is already noticeably weaker. Over approximately a year and a half, its exchange rate has fallen from more than NOK 10 to NOK 9.20, the lowest level in five years. Andreassen had previously warned Norwegian investors about the possibility of a sharp weakening of the US currency. Now, writing in Finansavisen, he believes that the current move may continue.
Capital Seeks a Safe Haven. The Norwegian Krone Gains
One reason is said to be the inflow of foreign capital. Andreassen points out that investors and global pension funds are responding to uncertainty in the United States and Europe by directing some of their funds to Norway. The country’s public finances also help. According to the economist, market participants increasingly see Norway as a safe haven.<br /><br />The situation on energy markets is also important. The conflict in the Middle East and the closure of the Strait of Hormuz are putting upward pressure on energy prices, which benefits Norway. The country remains an important producer and exporter of energy commodities. This factor further supports interest in NOK.
The weakening of the US dollar has been an ongoing process in recent months.Photo: Pixabay
Dollar May Fall Further. NOK 8 Level Possible Before Christmas
Andreassen expects the dollar to weaken further. In an interview with Finansavisen, he said that no one should be surprised if, before Christmas, the US currency reaches a level of just over NOK 8. This would mean falling below the NOK 9 threshold. The exchange rate currently stands at around NOK 9.20.<br /><br />However, this does not mean a calm market. Eika Gruppen’s chief economist assumes that the NOK exchange rate may still be subject to significant fluctuations in the coming months. However, his assessment of the main risk has changed. According to Andreassen, excessive strengthening of the NOK is now a greater threat than a sharp collapse of the Norwegian currency.
The future direction of the exchange rate will therefore depend not only on the situation in Norway. International capital flows, developments in the US and Europe, and energy prices linked to events in the Middle East will remain important. Andreassen believes that these factors may keep NOK at the centre of investors’ attention.
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