EUR/NOK is up by around 12% YTD and 17% YoY. Economists at ING discuss Krone’s outlook.

Short-term woes

We are not ready to call for a reversal of the NOK bearish trend in the near term. 

External factors need to favour a NOK recovery before any domestic factors can seriously become part of the equation.

A re-softening of the Dollar, and prevalence of the European growth story over the US one, paired with pre-emptive easing by the Fed in late 2023 could combine to generate a more benign environment for the Krone in the second half of the year.