30 April 2009

Krone Sees Gains

> It's the safe haven currency du jour: the Norway krone. Up to recently, it was always the good old Swiss Franc which was relied on for its strength, as were the yen and the US dollar. Lately, they have all lost their safe status for those who want less risk. Now, it is the krone which is taking the spotlight.

Yesterday, the Norway
krone gained 0.8 per cent against the euro to 8.7075, and 1.7 per cent against the dollar, to 6.5642. It was the second consecutive day that it gained strength. The price of a barrel of oil also increased by 2 per cent. Oil is Norway's main export so it stands to reason there is a constant correlation between the krone and oil.

Some currency traders see the krone as the best of a bad lot, but others are seeing it as a good place to focus, given the country's high current account surplus and an economy forecast that is much less gloomy than other European countries have seen of late.

No comments: