Recently, the koruna has appreciated against the euro, among other things. The koruna is currently the strongest as of August 1, 2019, according to the Norges Bank Index.
Norges Bank provides daily rates for I44, which is the bank's favorite target for the krone exchange rate and serves as the basis for setting interest rates.
I44 measures value of the crown against the currencies of 44 trading partners.
On Monday, I44 was 107,47 points, which means that the koruna is the strongest against the currencies of trading partners since August 1 last year.
As the koruna strengthens, Norwegians and Norwegian importers pay slightly less for goods bought from abroad.
On the other hand, exporters of goods such as fish, oil and manufactured goods receive less kroner each euro or dollar they receive for goods sold.
The euro is still above CZK 10
The koruna has still not returned to the level at the beginning of last year against the euro. However, it is starting to approach 10 kronor for 1 euro.
Nordea said in last weekthat in their opinion the krona may be below 10 against the euro this summer, but in the near future it will probably fluctuate between 10 and 10,30 kroner.
On Tuesday morning, one euro was worth 10,05 kronor against 10,23 koruna a week ago.
One dollar is worth 8,55 kronor, compared with 8,63 kronor a week ago.
As for the zloty, it also looks promising. 1 koruna is 0,462 zlotys
Currency crisis in the age of coronavirus
After the coronavirus crisis in March 2020 value of the Norwegian krone began to decline rapidly.
Widespread outages in many countries and falling oil prices were not a good combination for a small and open economy such as Norway's.
At its worst, on March 19 last year, one euro was worth around 13 kronor. The koruna has never been weaker than around 10 kronor against the euro before. One dollar was worth around 12 kronor at worst.
These were levels that had never been experienced before, a president of the central bank Øystein Olsen then announced that he was considering intervention in the currency market. Norges Bank he then invested several billion kroner to support the krona exchange rate, something he rarely does.
The announcement that Olsen was considering market intervention on March 19, 2020, sent a clear signal to the market and helped reverse the weakening trend of the koruna.
- This is fantastic. This shows that Norges Bank's measures are working, said bicycle importer Olav M. Hagen at Topbike.
Importers are hard hit by a weak crown. Harley Davidson importer Svein Erik Nilsen previously said he lost about 250 kronor on the dollar weakening after last year's coronavirus crisis.
Also read. How much is living in Norway
. Better prospects
After 2020 Oil prices rose again after a sharp decline in March and April. It appears that Norwegian economy avoided the worst crisis. Although the government is still not sure what growth will look like in 2021.
The improved outlook helped strengthen the Norwegian currency again, both against the dollar, euro and overall.
However, the crown is still weak. Before the coronavirus crisis, very rarely was the euro worth more than 10 kronor and the dollar more than 8,50.
The crown was much stronger a few years ago. Back then, the price of crude oil was around $ 100 a barrel, compared to $ 64 a barrel today. In 2013, one euro was worth around 7,30 kronor and one dollar was traded at 5,50 kronor.
