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– This helps a lot.
The krone is at its strongest against the dollar on Monday since July last year. A dollar today costs as little as 8.75 crowns. The krone has not been as strong against the US currency since July last year.
The dollar is also not the only currency to weaken against the crown. The euro and the Swedish krona also have the same movement. One euro now costs 10.45 kronor, the most in three months, while 100 Swedish kronor costs 101.61 Norwegian kroner, the highest level since July.
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Nordea Markets analyst Ole Håkon Eek-Nilsen says there is strong stock market development, especially in the US, combined with a rise in the price of oil, which is why the crown is gaining momentum actually.
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– It is the seventh consecutive day with stock market gains in the United States last week, at the same time that the price of oil exceeds 46 dollars a barrel. This helps a lot. But it’s probably not so much about internal conditions in Norway, he tells Nettavisen.
Follow the US stock market.
In addition to the price of oil, it is the US stock market that more than anything drives the krona exchange rate.
STRONGER: The Norwegian krone has risen sharply since the end of March, when it was almost 12 kroner against the dollar.
Photo: Ahead
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According to DNB, the krone exchange rate is the world’s currency that moves the most when the US S&P 500 stock index changes.
– So we see that the biggest movements of the crown occur when the S&P 500 rises or falls. A stronger S&P 500 gives a stronger crown. There is no overnight connection, but our calculations show that if the S&P 500 changes by 1 percent, the krone will change by a third of this, Magne Østnor at DNB Markets told Nettavisen on Sunday.
Read more here: DNB: This affects the crown more
Even weaker dollar
Eek-Nilsen shows that we have long had a strong dollar against the krone, but now expect this to partially reverse.
– It looked great in America for a long time. There was higher growth, higher interest rates and better efficiency than Europe. But then the crisis came and then the central bank could cut interest rates sharply and print money, says Eek-Nilsen, who points out that more dollars in circulation weaken the dollar against other currencies.
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– On top of that, there is a huge budget deficit. It should also be able to further weaken the dollar in the future, says the Nordea analyst.
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