The Norwegian central bank surprised markets with a rate cut earlier today in an effort to jumpstart growth there. With oil exports as a key industry in the Scandinavian country, Norway’s economy has been feeling the pinch of the recent oil price slump. Analysts, though surprised by this decision, say there is still scope for more easing from Norges Bank. Prior to this rate cut, the central bank last lowered rates in June but hinted at the possibility of further cuts this year.
As reported at 11:50 am (BDT) in London, the EUR/NOK was trading at 9.4853 Crowns; the pair ranged from 9.2233 to 9.5067 Crowns. The USD/NOK was up at 8.4668 Crowns, off from the session high of 8.4859 Crowns.
Loonie Feeling the Pressure
In general, oil-linked currencies have been feeling the weight of the Oil price crisis. The USD/CAD pair is trading at C$1.3339, near the high end of a tight trading band with C$1.3305 at the low end and C$1.3343 at the high. The Loonie recently struck an 11-year trough against the greenback, in the wake of the news reports out of China which highlighted the slowdown there. Also putting pressure on the Canadian Dollar was unexpectedly soft retail sales figures that were released yesterday.