The Norwegian krone is trading at around 9.30 against the US dollar, its strongest level since June 2022. Year to date, the krone is up nearly 8 percent against the dollar and around 5 percent against the euro. A dollar cost more than NOK 11 just fifteen months ago.
The main driver is energy. Oil prices have risen above $100 following the US-Israel conflict with Iran and disruption around the Strait of Hormuz, roughly doubling since the start of the year. Norway is Europe’s largest energy exporter, and higher prices mean more foreign capital flowing in and more buyers converting to kroner. Norges Bank’s March Monetary Policy Report confirmed that the oil price rise has been the primary factor behind the appreciation. On top of that, the dollar itself has weakened broadly, dragged down by tariff uncertainty and questions around US economic policy. The krone has been one of the strongest performers among G10 currencies this year.
There is also a policy floor underneath the rally. Norges Bank is holding the policy rate at 4 percent and signalled in March that the next move could be up rather than down, with forecasts pointing toward 4.25 to 4.5 percent by year end. The bank is also actively buying kroner, having announced it will sell foreign currency reserves and purchase NOK through February 2027. For anyone living in Norway, the stronger krone makes imports cheaper and holidays abroad more affordable. For exporters and the tourism industry, the picture is less cheerful.
SOURCE: Norges Bank, Monetary Policy Report 1/2026, 25 March 2026. https://www.norges-bank.no/en/news-events/publications/Monetary-Policy-Report/2026/mpr-12026/web-report-mpr-12026/ News in English, 29 April 2026. https://www.newsinenglish.no/2026/04/29/norways-krone-gains-strength/ The Local Norway, 18 March 2026. https://www.thelocal.no/20260318/krone-against-euro-what-norways-currency-rally-means-for-you
