Norwegian krone hits four-year high against euro as travel costs fall

Over the past twelve months the Norwegian krone has appreciated sharply, reaching its highest value against the euro in four years at 10.42 kroner per euro, easing costs for Norwegians traveling abroad. Nils Kristian Knudsen of Handelsbanken attributes the surge to soaring energy prices, which compel oil companies on the Norwegian shelf to buy krone for tax payments, as well as weaker confidence in the euro due to high debt levels in several EU states.

The dollar weakened to 9.31 kroner, a drop of nearly two kroner from two years earlier, while the Swedish krona fell to 94 kroner, its lowest point since 2023, reflecting Sweden’s low interest rates. Future krone strength depends on oil price stability; a sharp decline in oil or heightened Middle-East tensions could reverse gains. Knudsen expects the euro to settle around 11 kroner by New Year, with the krone likely to stay relatively strong.