Exchange Rate in Norway
Norway - Exchange Rate (average of period)
Krone bolstered to over three-year high by strong oil prices
The Norwegian krone appreciated markedly against the euro in recent weeks, reaching its strongest level since October 2018. On 25 March, the currency traded at NOK 9.48 per EUR, which marked a 4.9% appreciation from the same day a month prior, while it was up 5.7% year-to-date. Moreover, the krone was up 7.6% in year-on-year terms.
The outbreak of war following Russia’s late February invasion of Ukraine has sent commodity prices spiraling, especially for gas and oil; Russia is one of the world’s top three crude producers. While it is not expected that Russia will cut off supply to Europe due to its importance as a source of income for the country, the imposition of sanctions and the uncertainty over war-induced supply constraints have weighed on expectations. Still, the European Union has already started to plan and source energy supply elsewhere, benefiting Norway’s external sector—the country is the second-largest oil and gas exporter in Europe—the country’s sovereign wealth fund, and the NOK in turn. Meanwhile, talks with Germany continue over a potential hydrogen pipeline connecting the two nations, while the gas pipeline linking the country and Poland could be ready by the end of the year, adding further impetus to the outlook for exports.
Additionally, an increasingly hawkish Norges Bank reinforced the NOK’s strength. At its latest meeting on 23 March, Norges Bank increased the sight deposit rate by 25 basis points, bringing it to 0.75%, and it penciled in seven further increases until the end of 2023.
Markets expect energy prices to remain elevated in the medium term, boding well for the NOK’s performance ahead. That said, the scope for further strengthening could be somewhat limited once the country reaches full production capacity. Going forward, the currency is seen depreciating somewhat from its current strong levels.
FocusEconomics Consensus Forecast panelists project the NOK to end 2022 at 9.70 per EUR and 2023 at 9.50 per EUR.
Norway - Exchange Rate vs EUR (aop) Data
|Exchange Rate (vs EUR, aop)||8.95||9.29||9.33||9.61||9.85|
5 years of economic forecasts for more than 30 economic indicators.
Norway Exchange Rate vs EUR (aop) Chart
Source: Thomson Reuters
|Bond Yield||1.58||-0.65 %||Jan 01|
|Exchange Rate||8.78||-0.38 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
November 18, 2022
The Norwegian economy gained steam in the third quarter of 2022; GDP growth accelerated to 1.5% in seasonally adjusted quarter-on-quarter terms.
November 10, 2022
Inflation continued its upward trend in October, coming in at 7.5%, up from September’s 6.9%.
November 7, 2022
Industrial output declined 2.4% in month-on-month seasonally-adjusted terms in September, which contrasted August's 3.1% increase.
November 2, 2022
At its 2 November meeting, the Executive Board of Norges Bank unanimously voted to deliver a 25 basis point increase and bring the sight deposit rate to 2.50%–its highest level since February 2009.
October 10, 2022
Inflation resumed its upward trend in September and came in at 6.9%, up from August’s 6.5%.