Krone Has Best Week Versus Euro Since November on Growth OutlookEshe Nelson
The krone extended its biggest weekly gain against the euro in eight months on speculation that Norway’s economy will outperform its European counterparts.
The Norwegian currency strengthened versus all 16 of its major peers in the week amid signs central banks will persist with measures to stimulate the economy, boosting demand for higher-yielding assets. Against the dollar, the krone headed for its biggest weekly advance since October 2011, after Federal Reserve Chairman Ben S. Bernanke said two days ago that highly accommodative monetary policy was still needed in the U.S.
“Norway is still stronger than pretty much anywhere else in the world,” said Christian Lawrence, foreign-exchange strategist at Rabobank International in London. The krone will continue appreciating over the course of the year, he said.
Norway’s currency strengthened 0.3 percent to 7.9204 per euro at 5:03 p.m. London time. It climbed 1.3 percent from July 5, the biggest advance since the five days through Nov. 2. The krone was little changed at 6.0707 per dollar, rising 3 percent in the week.