Oslo buoyed by weakening krone

Oslo buoyed by weakening krone
Photo: Katrine Lunke
The Norwegian krone has weakened by over two percent against the euro in just 24 hours, as investors react to news China is in talks to buy up Italian state debt still weighing down the continent’s currency.

The two percent fall in value for the krone against the euro came as a relief for the energy-focused Oslo Stock Exchange.

The country’s export-driven economy often earns euro while paying costs in kroner, and much of what is exported is high-capital industrial goods and raw materials. Currency and contract news lifted a diversity of shares out of the market’s state of loss: offshore construction shipping company Oceanteam Shipping was up 10 percent; offshore survey outfit Dolphin Group was up 4.8 percent and vitamins raw material provider NattoPharma was up 8.3 percent.

The instant volatility in the krone stilled the notion of a week ago that the krone was fast becoming a safe-haven currency. The euro had gained against the dollar, pound and krone by Tuesday morning.

By Tuesday morning, one euro was 7.75 kroner, erasing the gains of exactly a week ago, when investors nervous about the prospect of Switzerland buying foreign currency or printing money left the Swiss franc for the kroner in droves.

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