What is happening with the Norwegian Kroner?

Over the last 5 years, I've kept a close eye on the exchange rate of the Kroner to US$. Over the last few months, it has weakened significantly. Can you shed any light on the Kroner and where its value is headed in the future? Thank you for time.

Hi,

The USD NOK exchange rate has climbed relatively sharply since the start of May when it was trading well below the 6.00 threshold.

The intervening period has seen a rise in geo-political tensions in Ukraine, Iraq and more recently Gaza. These have caused a pronounced dip in global risk sentiment and have seen USD NOK make a concerted run at its range-topping level of 6.2840 which it last clipped during the first week of February.

Our feeling is that the next year will bring further market uncertainty as several of the world's leading central banks look to tighten their monetary policy. Global trouble spots also pose an ongoing threat to the risk-sensitive Krone.

Our forecast for USD NOK into the medium term is therefore NEUTRAL TO POSITIVE.

Regards,

John Cameron
Currency News
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