The Norwegian Krone is not a currency for the faint of heart. Economists at ING believe that NOK could benefit from its attractive commodity exposure but may face a big downside in a risk-off scenario. 

NOK may continue to struggle with the high volatility environment

“A recovery in global sentiment should offer support to NOK in the second half of next year, but restoring market confidence in a very high-beta currency is no easy feat.”

“If indeed markets enjoy a calmer environment in 2023 and Norges Bank favours a stronger currency, then NOK is left with considerable room to benefit from a still strong energy market picture for Norway.”

“We see EURNOK at 10.50 in the fourth quarter of 2023, but NOK hiccups along the way are highly likely.”