[ad_1]
After a gradual strengthening over the summer, the krona exchange rate is at its lowest in nearly three months.
The exchange rate of the krona weakened sharply on Monday morning, both against the euro, the dollar and the Swedish krona.
For one euro, a crown now costs 10.85 crowns, compared to 10.35 crowns at the beginning of September. The crown is now at its weakest in June.
The drop comes in parallel with a sharp drop in stock exchanges, where the Oslo Stock Exchange is down as much as three percent.
Pessimism
– It is difficult to say exactly what it is that makes the krona so weak, but we had a slightly weak week last week and it continues that week here, Magne Østnor, currency analyst at DNB, tells Nettavisen.
Also read: Nordea predicts the impact of the crown: Holidays in the US can be much cheaper after the crown
He notes that increased pessimism about the crown situation is contributing to the decline. The pressure of infection in Europe has increased in recent weeks and many fear a new shutdown similar to the one we had in March. In such cases, the krone tends to weaken because investors then flock to safe currencies like the dollar and the euro.
– The mood has changed. The economy is no longer in a gradual and cautious improvement, and that affects the exchange rate of the krone, Østnor says.
Also read: DNB: This affects the crown more
Duet central bank
Østnor also believes that the interest rate meeting at Norges Bank in three days may have had a negative effect on the krone exchange rate. Norges Bank is not expected to show any signs of raising interest rates immediately, which in that case would be positive for the strength of the crown.
Also Read: Chief Economist Permanently Predicts Expensive Vacation Abroad After Crown Crisis
– Many expected Norges Bank to be more aggressive and more concerned about financial stability, but it is about to change, we no longer believe it and we could lean the other way, says the DNB economist. .
Also read: There is a risk with stocks and mutual funds that almost no one thinks about, and it can be extremely expensive for you (+)
[ad_2]
