The Mystery of the Norwegian Krone
@Robert J. Teuwissen:
Ultimately, the strength of a currency depends on the strength of its underlying economy. Norway, as a major energy producer, has a strong economy and therefore a strong currency. Recently, the Norwegian currency has weakened remarkably, especially against the euro, to its lowest level in three years. Now there are many factors that influence the development of currencies and often it is only in retrospect that it is clear which factor was the deciding factor. As an energy producer, the Norwegian currency is somewhat more strongly linked to the dollar and thus to oil price developments, but this is not enough to explain the fall this year. However, a significant portion of the energy revenue is invested through the Norwegian Oil Fund, which after all amounts to swapping the Norwegian krone