Norwegian Krone Declines as Inflation Slows: Oslo Mover
Norway’s krone was the biggest decliner against the euro and the dollar after a report showed inflation unexpectedly slowed.
The krone lost 0.8 percent to 7.3868 per euro and 1 percent to 5.7809 per dollar as of 12:04 p.m. in Oslo. It fell against all the 16 other major currencies tracked by Bloomberg.
Norwegian underlying inflation unexpectedly slowed in August as a strong currency damps price pressure in Europe’s second-largest oil exporter. Annual underlying inflation, which adjusts for taxes, fees and energy prices, slowed to 1.2 percent last month from 1.3 percent in July, Statistics Norway said. It was estimated to accelerate to 1.5 percent, according to a Bloomberg survey of 12 economists.
Inflation has remained below the central bank’s 2.5 percent target since mid-2009 as cheaper imports and a stronger krone have eased price pressures. Policy makers last month left their main interest rate unchanged, after two reductions since December, even as the economy benefits from record offshore investments and unemployment below 3 percent. the first increase “between December and June.”
The krone last month hit the highest against the euro since 2003.
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