Norwegian Krone Could Fall if Middle East Conflict Eases
Dow Jones08-14 21:23
1323 GMT - The Norwegian krone has probably reached its upside potential and looks set to weaken modestly by year-end, Commerzbank's Antje Praefcke says in a note. The Middle East conflict is likely to ease by year-end and oil prices should fall, denting the krone as a major oil producer, she says. However, revenue from oil and gas exports continues to flow in, so the krone should lose only a little ground, she says. Furthermore, Norway benefits from solid public finances, which should help the currency given rising fiscal risks in many neighboring countries, she says. The euro falls 0.3% to 10.9328 krone and Commerzbank expects it to rise to 11.1 by December.
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