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.
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.
