Bloomberg News

Danske Closes EUR/NOK Short on Risk Olsen May Talk Down Krone

February 15, 2012

Feb. 15 (Bloomberg) -- Danske Bank A/S said it decided to close its short position on EUR/NOK in response to the “growing risk” that Norway’s central bank Governor Oeystein Olsen tomorrow might try to talk down the krone, the Copenhagen-based lender said in a note to clients today.

Olsen is due to give his annual address on the state of monetary policy tomorrow in Oslo. In a Sept. 8 speech last year, Olsen warned that the central bank is ready to use “monetary policy measures” to prevent the krone from appreciating too much and that the “key policy rate is the relevant instrument” with which to do so.

The krone this week reached a five-month high against the euro and was little change at 7.5313 as of 12:37 p.m. local time.

To contact the reporter on this story: Jonas Bergman in Oslo at jbergman@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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