The Norwegian Krone has plummeted to its lowest level in almost nine years against the Swedish Krona as interest rate prospects for the two Nordic economies diverge, the decline marks the eight consecutive day of the Krone’s fall.
The weakness comes after data released in both Scandinavian countries’s highlighted a divergence in fortunes for both economies.
The Norwegian Krone Exchange Rate was in the region of 8.1200 Krone per Euro as of 12:20 pm GMT
Data released earlier in Thursday’s session showed that unemployment in Sweden declined by a bigger than expected margin in July. The jobless rate fell to 7.2% in July, down from the 9.1% recorded in June. The positive data smashed economist forecasts and created speculation that the Swedish Central Bank could opt to introduce faster interest rate rises in the largest Nordic economy.
Meanwhile in Norway traders are reconsidering their expectations for higher rates after data released earlier in the week showed that the nation’s economy grew by just 0.2% in the second quarter of 2013, less than a third of the pace expected by economists.
As a result of the negative data the Krone tumbled against the majority of its most traded peers including the Euro and Sterling.
“It all started off with the rather weak GDP numbers in Norway, the GDP number itself, while disappointing, the details in the GDP number were driven by temporary factors in inventory adjustments rather than in more important factors for growth,” said Carl Hammer, a currency strategist at SEB AB in Stockholm.
Current Exchange Rates:
The Norwegian Krone/Pound Sterling Exchange Rate is currently in the region of: 0.1055
The Norwegian Krone/Euro Exchange Rate is currently in the region of: 0.1231
The Norwegian Krone/ US Dollar Exchange Rate is currently in the region of: 0.1644
The Pound Sterling/ Norwegian Krone Exchange Rate is currently in the region of: 9.4783
The Euro/Norwegian Krone Exchange Rate is currently in the region of: 8.1200
The US Dollar/Norwegian Krone Exchange Rate is currently in the region of: 6.0824
The Australian Dollar/Norwegian Krone Exchange Rate is currently in the region of: 5.4839
(Correct as of 12:20 pm GMT)
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