The Norwegian Krone has greatly strengthened and has reached its highest level since June. This may force The Norwegian Central Bank to institute new interest cuts if the trend in the foreign exchange market continues.
The Norwegian Krone has increased significantly against both the euro and the American dollar since Norges Bank, the Norwegian Central Bank, held its interest rate at its meeting on 17 September.
The krone made another jump Tuesday afternoon (23 September 2003) while the euro rate fell from NOK 8.16 to 8.07, and the dollar rate fell from NOK 7.11 to 7.06.
Financial analysts in the foreign exchange market predicted that the krone would be so strengthened that the euro rate would decrease down to as far as NOK 8.00. At the same time, Harald Magnus Andreassen, economist at First Securities, stated that a strengthen krone rate may put pressure on Svein Gjedrem, head of the Norwegian Central Bank, to institute further interest cuts.
