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Norwegian Krone Falls on Talks About Budget Reduction

November 8, 2013 at 14:11 by Vladimir Vyun

A fan of 50-krone notesThe Norwegian krone dropped today as nation’s officials suggested that a stronger currency may be harmful to the economy, affecting local exports in a negative way. Some drastic measures, like budget reduction, might be taken in case of appreciation.

Norway’s Prime Minister Erna Solberg was talking about budget cuts that might be necessary to help Norwegian exports remain competitive:

If the Norwegian krone starts to appreciate more, we have to cut back on our budget. One of the long-term goals of this government is to make sure there is competitiveness for our non-oil businesses so they become better. And one of the areas for competitiveness is investments and the exchange rate.

USD/NOK went up from 6.0552 to 6.1230 as of 14:11 GMT today.

If you have any questions, comments, or opinions regarding the Norwegian Krone, feel free to post them using the commentary form below.

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