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Chart of the week: Norway’s crown has slipped

The Norwegian krone has slipped to a record low of more than ten to the euro.

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The Norwegian krone has slipped to a record low of more than ten to the euro. It's not entirely clear why it has done so badly; its 6% loss against the single currency in the past six months is the worst performance of any major currency. Interest rates have actually risen four times and the economy seems robust.

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This is partly an oil story. Oil and gas comprise half the country's exports and oil has weakened recently amid signs of weakening global growth. But the central bank thinks a key change over the past few years is that in times of heightened uncertainty, especially during a trade war, investors are increasingly turning away from the currencies of small, open economies.

Viewpoint

Jonathan Allum, The Blah

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