Krona styrker seg etter rentebeslutning

The Norwegian krone strengthened following a decision by the Norges Bank to raise interest rates to 4.5 percent, seeing the value of the krone move slightly in favor of the largest currencies. Within minutes, the krone gained around 2 cents against both the dollar and the euro. At 10:40 AM, the focus was only on 1 cent. One dollar now costs 9.47 kroner, and one euro costs 10.78 kroner.

The krone rate is crucial for the central bank's policy rate, particularly as it influences import prices and thus inflation. A stronger krone implies less need for interest rate hikes, while a weaker krone would argue for higher rates. The krone strengthened against both the euro and the dollar in July and August, before flattening out more in September.

The Norwegian currency has been at somewhat stronger levels than the Bank of Norway expected since June. The 44-mark rate has been around 110 in September. The Bank of Norway has forecasted 113.2 for 2026 and 112 for the years ahead. Currency strategists have spoken to E24, expecting the krone to weaken in the coming months. Handelsbanken has forecasted it to reach 11 kroner against the euro at the end of the year and the start of 2027.

Sparebank 1 Markets believes the krone rate is "very conditional on energy prices." Geopolitical conflicts, such as the war in Ukraine, the Middle East, and the Hormuz Strait situation, have driven oil and gas prices sharply up. Strategists also believe there is room for more interest hikes abroad than in Norway, which often argues for a weaker krone rate.