Historical krone collapse – almost 12 kroner for a dollar
One US dollar before the IPO costs NOK 11.85, one pound costs NOK 13.61, while one euro costs NOK 12.93, writes Dagens Næringsliv. The krone rate on Wednesday is by far the biggest fall since Norges Bank left the fixed exchange rate regime in 1992. At six hours, the krone fell by 1 kroner against the dollar on Wednesday, and the fall continued night to Thursday.
At the lowest, the krone was measured against the dollar at $ 11.96 night through Thursday. The previous “record” was December 16, 2014, when the krone exchange rate fell 60 cents in a short time, E24 writes. Sensitive to oil prices The foreign exchange market is in complete panic. Magne Østnor, a currency strategist at DNB Markets, describes it as a fire sale. – The financial markets are about to melt down.
There are markets that almost do not work, says Østnor to E24. The krone is sensitive to the oil price, which has more than halved in a month. A barrel of North Sea oil was well below $ 26 last night Thursday. Very rare diet Oil prices plummet as a result of the corona pandemic and the price war between Saudi Arabia and Russia.
At the same time that Saudi Arabia is announcing increasing production, the corona crisis means lower demand. Joachim Bernhardsen, an analyst at Nordea Markets, tells NRK that the huge depreciation is very rare. The outlook is unclear.
The krone exchange rate has been notoriously difficult to predict in more normal times, and now it is far from normal times, so I will not say whether the krona is strengthening or weakening now. This is challenging, says Bernhardsen. (NTB)