Krone Drops Most in Six Months on Norges Bank Rates Cut
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The krone dropped the most in six months against the euro after Norway’s central bank unexpectedly cut its benchmark interest rate as it attempts to deter investors from buying the currency as a haven.
The Norwegian currency declined to a five-week low versus the dollar. Norges Bank policy makers cut the key borrowing cost by a quarter of a percentage point to 1.5 percent, seeking to cool an expanding property market without spurring krone strength. The decision was forecast by just two of 16 economists surveyed by Bloomberg. The remaining 14 predicted no change.