Norway Krone on the Rise

Noway’s krone has been enjoying time in the glow of the limelight, as currency markets have been increasingly looking to it as a safe haven currency.

Up to now, it is always the Swiss Franc, the yen and the US dollar that have been seen as the safe haven currencies, but this is no longer the case. We know why the dollar and yen have been risky in recent times, but the Swiss Franc has also had its position weakened by the Swiss National Bank’s decision to step in and weaken the currency by force.

Now, traders have been looking for a more reliable source. The Norway krone has stepped in, with a country that has a healthy current account surplus and economy forecasts certainly less poor than other global economies.

Some currency watchers have been less positive about the krone – after all, what about its relationship with oil? The commodity is Norway’s main export, and therefore the price of a barrel can affect the strength of the currency.

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