The Norwegian krone goes through episodic sharp declines at times of market stress but usually reclaims those losses when conditions settle. Economists at ING expect EUR/NOK and USD/NOK to correct towards 10.00 and 9.60, respectively.

Primed for a recovery

“We see a temporary reprieve for risk assets, which will allow investors to focus on one of the enduring impacts of the war in Ukraine – higher energy prices. 

“Having rallied 8% over the last month, we would not be surprised to see EUR/NOK correcting lower in a move that could extend back to 10.00.”

“USD/NOK could correct a little further to the 9.60 area.”