This is the best level in years. Here’s what the latest Norwegian krone exchange rate looks like
The Norwegian krone is at its strongest against the currencies of Norway’s trading partners since autumn 2022. This is shown by the I44 index, monitored by Norges Bank. Since the beginning of the year, the NOK has gained 8.5%.
The Norwegian krone owes much to the international situation.
Fot. Adobe Stock, licencja standardowa
The strengthening of the currency is linked, among other things, to rising oil prices following events in the Middle East. Sara Midtgaard, a currency strategist at Nordea Markets, believes the NOK’s upward movement is ongoing. According to her, the currency is gaining against the dollar, euro, and, among others, the Swedish krona.
Oil and markets on the rise. This supports the Norwegian krone
The price of oil has stabilized around $100 per barrel. According to Midtgaard, this supports the Norwegian krone. Positive sentiment on stock markets is also important. Foreign investors associate Norway with the oil and gas sector.
The NOK has gained almost 10% against the Swedish krona. One SEK is worth 0.98 NOK. The euro costs 10.76 NOK. The dollar costs 9.18 NOK, and the pound 12.43 NOK.
The NOK has gained almost 10% against the Swedish krona. One SEK is worth 0.98 NOK. The euro costs 10.76 NOK. The dollar costs 9.18 NOK, and the pound 12.43 NOK.
The Norwegian krone is supported by its connection to the commodities market.Photo: Adobe Stock, standard license
NOK exchange rate forecasts. Uncertainty remains high
Nordea Markets expects the dollar to cost 8.60 NOK at the end of 2026 and 8.40 NOK at the end of 2027. The forecast for the euro is 10.75 NOK at the end of 2026, with the same level expected at the end of 2027. However, Midtgaard notes that the range of possible scenarios is wide.
NOK is also influenced by flows related to the oil sector. Companies have been buying more NOK to pay taxes after the rise in oil and gas prices. Norges Bank has also been buying more NOK. In autumn, this mechanism may change if higher state revenues from oil and gas reduce the need for such purchases.
NOK is also influenced by flows related to the oil sector. Companies have been buying more NOK to pay taxes after the rise in oil and gas prices. Norges Bank has also been buying more NOK. In autumn, this mechanism may change if higher state revenues from oil and gas reduce the need for such purchases.
According to ING analyst Chris Turner, the strengthening of the NOK and the Australian dollar is supported by investors seeking higher yields. In periods of low volatility, they borrow in lower-yielding currencies and then invest in those with higher returns. Turner includes the Norwegian krone in this group.
How do you rate this article?