The Norwegian Krone has soared to a record high against the British Pound. So far this month Sterling has fallen to its weakest levels against the Scandinavian currency in over ten-years as it continues to be battered by the markets.
Concerns over the state of the British economy and the possibility of the UK losing its AAA credit rating have led to the Pound’s heavy losses. A string of disappointing economic data and the uncertainty regarding the UK’s future membership in the European Union have all weighed heavily on the currency.
Meanwhile Norway continues to prosper, recently ranking in at top place in global prosperity rankings and benefitting from oil and gas exports. The nation has posted very strong trade surplus data, boosting the currency’s appeal and maintaining its position at record highs. The trade surplus for the first half of 2012 saw a 25% jump compared to the previous year and since then Norway has continued to post strong surpluses; in December 2012 it recorded a trade surplus of 35530.06 million NOK.
The currency has strengthened against the majority of its most traded peers, strengthening to its highest level since October 2011 against the US Dollar.
Against the Euro the Krone has strengthened over the past month, slipping occasionally when the Eurozone produces some positive data. Currently the Krone is trading in the region of 0.13 against the single currency.
The Krone could also make further gains if over the course of the year the European Central Bank chooses to not alter its current record low interest rate. If the currency’s appeal as a safe-haven intensifies then the currency could appreciate strongly. However, there is a risk of a reversal if European and global sentiment improves further. The currency looks set to continue to strengthen at the expense of Sterling as the British currency continues to suffer from weak investor sentiment and disappointing economic data.
Rates correct as of 16:10pm
The Norwegian Krone to Pound exchange rate is currently trading at 0.11645
The Norwegian Krone to Euro exchange rate is currently trading at 0.13459
The Norwegian Krone to US Dollar exchange rate is currently trading at 0.18223
The Norwegian Krone to Australian Dollar exchange rate is currently trading at 0.17667
The US Dollar to Norwegian Krone exchange rate is currently trading at 5.48753
The Pound to Norwegian Krone exchange rate is currently trading at 8.58773
The Euro to Norwegian Krone exchange rate is currently trading at 7.43009
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