Norway’s krone now worth 10 to the euro as value continues to drop

Norway’s krone now worth 10 to the euro as value continues to drop
Photo: kjelljoran/Creative Commons
It now takes 10 Norwegian kroner to buy 1 euro, for the first time since December last year.

The krone has gradually weakened in recent weeks and devalued further on Monday, passing 10 kroner against the euro for the first time since December 19th, finance media E24 reports.

Early Monday exchange rates showed a euro costing 10.00 kroner, a decrease of 0.27 per cent or around two øre from Friday.

Meanwhile, the US dollar was at 9.06 kroner, close to two øre more expensive than before the weekend.

Risk aversion in financial markets is bad news for the krone exchange rate, according to a morning report by Nordea Markets analyst Joachim Bernhardsen, E24 writes.

“We have recently warned against a weakening stock market and it is probably not over yet. The stock market is still inflated and susceptible to bad news going forward,” Bernhardsen wrote.

“This indicates that the krone may weaken further in the future,” he added.

The krone had already weakened earlier as January amid growing instability in the Middle East, while, oil prices have fallen sharply over the past week as the corona virus spread in China.

The fall in oil prices continued Monday.

Experts believe that the risk of oil demand falling due to the virus outbreak is driving oil prices down, E24 writes.

READ ALSO: Why Norway's krone keeps getting weaker


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