Kroner dives against Euro
 The Norwegian krone isn't worth as much as it was last summer. PHOTO: BERIT ROALD/SCANPIX |
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For the first time since its introduction in 1999, one euro cost more than NOK 9 Wednesday morning. It also cost about NOK 7 to buy one US dollar, compared to NOK 5 just a few months ago.
International financial unrest is blamed for the sharp fall in the Norwegiankrone. The US dollar and the euro are simply more popular than other currencies at present.
"If you go to a restaurant and are really hungry, you don't order something you haven't eaten before," mused senior economist Shakeb Syed at Handelsbanken Markets to financial news service E24. "You go for the safe and familiar burger. That's what's making investors in the currency markets go for the dollar."
The krone's sudden dive has just as suddenly made everything from US and European holidays to imports more expensive. On the other hand, US goods were even more of a bargain last spring than they usually are, so prices will comparatively return to more familiar levels.
The strong krone/crown also caused concerns for Norwegian exporters, like seafood and furniture producers, so now their own goods may seem more competitively priced. Many Norwegian businesses also benefit from a stronger dollar. Shipping rates and commissions, for example, are almost always set in dollars, so more crowns for the dollar can mean higher revenues in local terms for some of Norway's most important industries.
Nina Berglund
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