Factors that influence the krone exchange rate.(Norwegian exchange rate model)(Statistical Data Included)

This article examines how the krone exchange rate is influenced by factors such as the oil price and turbulence in international financial markets. The article contains an analysis of the krone exchange rate against the German mark (the euro from 1 January 1999) and against an average of our trading partners' currencies. In the long term, the krone exchange rate is found to be dependent on the oil price and the price differential between Norway and other countries. In the short term, the krone exchange rate is also influenced by international financial turbulence and by the interest rate differential against other countries. International financial turbulence has had a ...

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