Surprise Rate Hike Pushes Norway’s Krone Up

The Norwegian currency climbed today versus most of 16 main traded currencies after the nation’s central bank rose its benchmark interest rate surprising analysts and attracting traders to krone-priced assets.

The Norges Bank contradicted most of forecasts today raising by a quarter-point its interest rates to 1.75 percent alleging it should prevent the Nordic economy to overheat, as the inflation is near the central bank target of 2.5 percent. Norway’s central bank decision affected traders positively and the krone advanced versus the euro and the dollar.

EUR/NOK closed at 8.3705 from a much higher opening rate of 8.4745, falling more than 1 percent today.

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