Norwegian krone hits record low against the dollar and euro. Photo: Thomas Nilsen

Norwegian krone plunges to its lowest in modern times

Coronavirus pandemic and oil price collapse have a dramatic impact on the risk-sensitive Norwegian currency.
March 19, 2020


A dollar was Thursday morning traded at 11,86 kroner and a euro costs 12,96 kroner.

For Norwegians that are used to have a strong currency in its oil-depending economy, the movements in the foreign exchange markets are staggering.

Norway’s krone is down more than 20% to the dollar in just a few days and the euro has never costed more.

On Wednesday alone, the krone was down 9% to the dollar. The Norwegian krone is now at the lowest since 1971. One Swedish krone costs 1,14 Norwegian krone. A Danish krone, a currency linked to the euro, now costs 1,73 Norwegian krone. 

With the oil-price down 24% on Wednesday to 26 dollars a barrel, the markets are running to safe currencies like the dollar.

The coronavirus outbreak leaves empty streets, stand-still in many businesses, a tourist market in collapse, a boost in unemployment and now the total oil crash.

Norway’s government on Sunday offered a 100 billion Norwegian kroner rescue support package to companies. More could come as the domestic economy starts feeling the severe consequences of the meltdown in the markets.



The Barents Observer Newsletter

After confirming you're a real person, you can write your email below and we include you to the subscription list.

Privacy policy