Krone strengthens, euro weakens. Norwegian currency strongest since 2022
The Norwegian krone has reached its highest value against the currencies of trading partners since April 2022. Since the beginning of the year, it has strengthened significantly against the euro, the dollar and the Swedish krona, among others. A stronger NOK means lower costs for foreign travel and imports, but also less favourable revenue conversions for Norwegian exporters.
The Norwegian krone is at its strongest since 2022. What does this mean for people living in Norway?
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The strengthening of the Norwegian currency continues. Data from Norges Bank (NB) show that the I44 index, which measures the value of the NOK against the currencies of 44 trading partners, has fallen from 119.86 to 106.66 points since the beginning of the year. The lower the indicator, the stronger the krone. Friday's reading was the lowest since 25 April 2022, meaning the Norwegian currency has reached its highest value in that period.
Euro and dollar have become markedly cheaper. NOK gains value
On Monday morning, 2 November, one euro cost NOK 10.31. At the beginning of the year, the exchange rate was still NOK 11.84, while just before the weekend the European currency cost only NOK 10.24. The dollar has also become cheaper. Its exchange rate fell from NOK 10.05 at the beginning of the year to NOK 9.21. Significant changes are also visible in the Swedish currency. One hundred Swedish kronor currently cost NOK 93.97, compared with NOK 109 at the beginning of 2026.
A stronger NOK matters for households and businesses. Norwegians may pay less for foreign travel and imported goods. The situation is different for exporters. Companies receiving payments in euros or dollars obtain smaller amounts in NOK after currency conversion. In the last week of October, chief economist Bjørn Roger Wilhelmsen assessed that the Norwegian currency may be approaching the peak of its current strengthening.
A stronger NOK matters for households and businesses. Norwegians may pay less for foreign travel and imported goods. The situation is different for exporters. Companies receiving payments in euros or dollars obtain smaller amounts in NOK after currency conversion. In the last week of October, chief economist Bjørn Roger Wilhelmsen assessed that the Norwegian currency may be approaching the peak of its current strengthening.
The euro now costs only NOK 10.31. The krone has not been this strong in years.Photo: Pxhere
Oil and gas prices support NOK. Economists point to further factors
Energy commodity prices are among the factors behind the strengthening of the NOK. Economists at the Swedish commercial bank Handelsbanken, Marius Gonsholt Hov and Nils Kristian Knudsen, point out that rising oil and gas prices were the most important factor supporting the currency last week. The uncertain fiscal situation in France, which weakened the euro, was also significant. Oil for delivery in one month currently costs 110 dollars per barrel, compared with 63 dollars a year earlier. European gas is priced at 101 euros per MWh, while in the corresponding period last year it cost 31 euros.
However, the market situation has begun to change somewhat. Since the end of last week, oil has partially become cheaper, while the euro has recovered some of its losses against the NOK. At the same time, analysts expect NB to keep its key interest rate at 4.5 per cent at Thursday's meeting. All economists included in the cited survey expect this scenario, and the financial market likewise does not anticipate a change in interest rates. NB's own interest rate forecast indicates a very low probability of such a decision being made in November.
However, the market situation has begun to change somewhat. Since the end of last week, oil has partially become cheaper, while the euro has recovered some of its losses against the NOK. At the same time, analysts expect NB to keep its key interest rate at 4.5 per cent at Thursday's meeting. All economists included in the cited survey expect this scenario, and the financial market likewise does not anticipate a change in interest rates. NB's own interest rate forecast indicates a very low probability of such a decision being made in November.
Inflation remains a significant problem, as it still exceeds the central bank's 2 per cent target. Handelsbanken economists believe that the committee responsible for monetary policy should clearly declare its readiness to raise interest rates further. In their view, this option should remain open if further increases prove necessary to curb price growth.
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