The Norwegian krone, which is the strongest among the G10 currencies, dropped to the last place in just a month. In recent weeks, it was depreciating even faster than the zloty. This was linked to both declines in oil prices and the fear of a new mutation in the coronavirus.
Crude oil prices form the foundations of the Norwegian currency. Rising crude oil usually drives positive trends in the Norwegian economy and the koruna exchange rate. However, when the demand for the raw material and its quotations on global stock exchanges drop. As a rule, then it means trouble for Norway's industry and its currency.
It also creates the unique position of the Norwegian krone Norges Bank, which was the first of the world's major central banks to plan the normalization of financial policy during the pandemic.
More about dynamic changes in Norwegian currency rates and its relations with the euro and the zloty in the presentation of Bartosz Sawicki, analyst at Cinkciarz.pl:
Source: Cinkciarz.pl
Read our next article: Currencies - NOK rate
