Norwegian Krone Down vs. US Dollar Following Norges Bank Meeting

The Norges Bank (Norway’s central bank) was one of the central banks that were conducting policy meetings today and decided to keep their monetary policies unchanged. The Norwegian krone (as well as most other currencies) traded below the opening level against the US dollar after the meeting.

The Norges Bank decided to leave its main interest rate at 0.5% at today’s meeting. Governor Øystein Olsen said in the statement:

Our current assessment of the outlook suggests that the key policy rate will most likely remain at today’s level in the period ahead.

At the same time, the statement noted:

The key policy rate forecast implies a slightly higher probability of a decrease than an increase in the key policy rate in the year ahead.

While such comments may be partially responsible for the krone’s drop versus the greenback, the most likely reason for that was yesterday’s policy meeting of the Federal Reserve.

USD/NOK rose 0.83% to 8.6481 as of 13:55 GMT today.

If you have any questions, comments or opinions regarding the Norwegian Krone,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *