The Norwegian krone fell today after central bank’s Governor Oeystein Olsen said that investors will shun riskier currencies, but the krone rebounded and currently trades above the opening rate.
The krone slumped after Norges Bank unexpectedly cut its interest rates, but was rising since then. Olsen said in an interview today:
At some point there is a risk for investors that the krone weakens. For short-term investors this is a risk that we have underlined may times, we are not like the Swiss franc, we are not as voluminous, so the door is much more narrow than in Switzerland.
These words caused a drop of the krone, but it was short-lived and the currency quickly rebounded.
USD/NOK dropped from 5.7823 to 5.7492 as of 13:11 GMT today.
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