Will Norges Bank Stop Cutting Interest Rates? Traders Hope So, NOK Rallies

The Norwegian krone continued to rally today, following yesterday’s gains, on the speculation that the nation’s central bank will end its interest rate cuts as the Norwegian economy demonstrates positive developments.
Norway’s economy is improving as crude oil prices rallies. Unemployment dropped, consumer confidence improved and manufacturing expanded. The positive fundamentals allowed economists speculate that Norges Bank Governor Oeystein Olsen will keep the main interest rate at the current level of 1.75 percent.
The krone was further boosted by the advance of stocks on positive sentiment among investors that was caused by the positive news from Europe and the United States. Norway’s benchmark OBX Index added as much as 1.1 percent to 383.460.
USD/NOK dropped from 5.6516 to 5.6434 and EUR/NOK was down from 7.4335 to 7.4302 as of 3:23 GMT today.

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