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.
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