NORWAY KRONE

Chart of the day summation

1. 1. “After quiet period ends- expect the biggest ‘crapshoot’ for US IPO`s.

     2. “Sell happiness, BUY gloom in emerging markets-Chart of the day” 
     3.   Buy basket of Asian currencies
     4.   BUY Norwegian Krone?
     5.  AVOID: US, UK, EURO currencies.

* NORWAY KRONE- ALL THE FUNDAMENTALS ARE RIGHT

The value of Norwegian kroner compared to other currencies varies considerably from one year to another, mainly based on changes in [oil prices](<http://en.wikipedia.org/wiki/Petroleum#Pricing> "Petroleum") and interest rates. In 2002 the Norwegian krone grew to record high levels against the [United States dollar](<http://en.wikipedia.org/wiki/United_States_dollar> "United States dollar")and the [Euro](<http://en.wikipedia.org/wiki/Euro> "Euro"). On 2 January 2002, 100 NOK were worth 11.14 USD (1 USD=8.98 NOK). In July 2002, the krone hit a high at 100 NOK = 13.7 USD (1 USD=7.36 NOK). In addition to the high level of interest, which increased further on 4 July 2002, to 7 per cent, the price of oil was high. At the time Norway was the world's third largest [oil](<http://en.wikipedia.org/wiki/Petroleum> "Petroleum") exporter.

In 2005, oil prices reached record levels of more than 60 dollars per [barrel](<http://en.wikipedia.org/wiki/Barrel_(unit)> "Barrel (unit)"). Although interest rates had decreased to around 2 per cent, the Norwegian krone grew even stronger.

However, in late 2007 and early 2008, the USD suffered a steady depreciation against all other major currencies. The Norwegian krone was gaining value at the same time; as a result, the Norwegian krone became stronger than ever compared to the USD, making the USD worth about 5 NOK in April 2008. By October 2008, the USD had recovered and was worth approximately 7 NOK. Following 2009, the NOK has once again seen strong growth, making the USD worth about 5.8 NOK as of the beginning of 2010.

As of 2009 the Norwegian kroner was the tenth most traded currency on the [foreign exchange market](<http://en.wikipedia.org/wiki/Forex#Trading_characteristics> "Forex").

11 August 2011

* Norges Bank on Hold Due to Market Turbulence – Roubini

* Norges Bank, Norway's central bank, kept the policy rate unchanged at 2.25% at its August 10 monetary policy meeting despite earlier having assigned a "100% probability" for a hike, citing ongoing market turmoil. So far we are not seeing signs of weaker activity in Norway, but expect lower oil prices and slower global growth to weaken growth in Norway in coming quarters. Furthermore, global rate expectations have come down, which limits Norges Bank’s ability to hike rates, as this would likely lead to currency appreciation and too low an inflation figure. Norges Bank will publish its next monetary policy report in October, and it seems likely it will lower the rate path forecast in that report.

* Also, an Increase in oil price with supply contractions due the Middle East Spring, possible Iran invasion makes the KRONE very liquid.