The world is about to normalize. This also has a positive effect on the crown.
Whether it is online transactions or among the few people traveling abroad, a stronger Krona is beneficial to importers and Norwegians shopping abroad.
The increase in the krona is not very good for exporters of fish or oil, for example, because for every euro or dollar they earn, the krona received is reduced.
The important import-weighted krona index I44 is now 106.59 points, which indicates the strongest krona since July 2019 (see chart).
Norges Bank monitors the krona when setting its interest rate. Then, interest rate setters will pay special attention to the I44 index.
One of the reasons for the increase in the krona is the rise in oil prices and the prospect that the economy will soon return to a more normal period after the corona crisis.
-E24 chief economist Bjørn Roger Wilhelmsen (Bjørn Roger Wilhelmsen) said that after receiving news about vaccines last fall, many strengthening measures have taken place, and the market is beginning to see that the economy can finally reopen.
-The world will be normalized and will be very important to the market recently. Williamson said this also has a positive effect on Krona.
-What do you think of the crown?
-I think the crown should not turn here. Williamson said, I think there is more work to be done because vaccination will be strengthened.
-We will not use AstraZeneca vaccines, but we will get more doses of Pfizer and BioNTech vaccines. Then, I think this reopening focus will continue to dominate the market in the coming months. He said this can make the crown stronger.
Among various currencies, the value of one euro is now 9.99 Norwegian kroner, while it is 10.47 Norwegian kroner at the time of the new year. The exchange rate of the US dollar to Norwegian kroner is 8.30 Norwegian kroner, which is lower than the 8.57 Norwegian kroner in the new year.
A few weeks ago the exchange rate of the euro was less than 10 krona, but since the outbreak of the corona crisis in early 2020, the closing price of the trading day has been less than 10 krona.
-If today’s closing price of the krona to euro exchange rate is less than 10, and tomorrow we continue to fall below 10, that will be new news. Williamson said that at the end of March, the euro-euro exchange rate fell below 10 in intraday trading, but then closed below 10.