Norway’s krone hit the weakest on record against the euro, surpassing the previous record set during the 2008 financial crisis.
The krone touched 10.1641 per euro at 2:45 pm in Oslo, according to Bloomberg data, amid pressure from global tensions and weakening oil prices.
Norway is Western Europe’s biggest producer of petroleum products and gets almost half its goods exports from oil and natural gas.
Norges Bank has been puzzled by the weakening currency, a move that has allowed it to raise interest rates four times since September 2018. The central bank has increased its estimate on the currency’s equilibrium exchange rate, meaning that it now sees the weakening currency as a structural shift.
Crude oil prices are close to breakeven levels for shale drillers, are challenging the profitability of newer offshore sites and are well below the fiscal breakevens for much of OPEC. That is putting downward pressure on the currencies of oil producers.Click HERE to subscribe to Fuller Treacy Money Back to top