Bloomberg News

Norwegian Krone Climbs to Six-Week High as Production Surges

August 07, 2012

Norway’s krone rose to its highest level against the dollar in more than six weeks as a report showed a measure of Norway’s manufacturing production unexpectedly increased in June.

The Norwegian currency strengthened against all 16 of its major peers tracked by Bloomberg as data showed factory output expanded 0.8 percent from May, when it grew a revised 0.6 percent. The outcome compares with a forecast rise of 0.4 percent in a Bloomberg News survey. Industrial production climbed 4.3 percent in the 12 months to June, up from 1.7 percent in May. The krone approached its strongest level versus the euro in 9 1/2 years.

“We’ve had better-than-expected data from Norway, and an upward revision from last month, which is a contributing factor,” to the strength of the krone, said Jane Foley, a senior currency strategist at Rabobank International in London.

The krone appreciated 0.7 percent to 5.9197 against the dollar at 2:31 p.m. London time, after reaching 5.9149, the strongest since June 21. The Norwegian currency gained 0.4 percent to 7.3620 per euro. It touched 7.3475 on July 23, the highest since January 2003, according to data compiled by Bloomberg.

To contact the reporter on this story: Eleanor Lawrie in London at elawrie@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.


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