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.
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
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
House prices rise 2.9% – will the recovery continue?House prices grew by 2.9% on an annual basis in September. Will Budget policies and ‘higher-for-longer’ rates dent the recovery?
-
Nvidia earnings: what to expectNvidia announces earnings after market close on 20 November. What should investors expect from the semiconductor giant?
-
Chart of the week: sterling’s sea of troublesCharts Sterling slipped to a two-year low against the greenback this week, and remains around 12% below its pre-referendum level.
-
Chart of the week: the pound’s post-war swan diveCharts The pound hit a new 20-month low against the dollar this week as Prime Minister Theresa May postponed the Brexit vote.
-
Chart of the week: The Mexican peso has peakedCharts The Mexican peso has gained 8% against the dollar this year. But that's as far as it is likely to go.
-
Chart of the week: government splits rock the randCharts The South African rand slipped by almost 3% last week, its worst five-day showing since August amid worries that President Jacob Zuma may be set to sack his competent and economically literate deputy Cyril Ramaphosa.
-
Chart of the week: Thai baht defies gravityCharts Tourism is booming, the current account is in surplus, and the yield on local assets is enticing. No wonder the Thai baht has risen by 8% against the US dollar this year.
-
Chart of the week: the loonie takes offCharts The Canadian dollar, nicknamed the loonie, has leapt to a two-year high around $1.21 against its US counterpart as a result of Canada's robust eocnomy and higher interest rates.
-
Chart of the week: vote for authoritarianism will crush the Turkish liraCharts The Turkish lira has fallen as Erdogan’s authoritarian tendencies have unsettled foreign investors. It is at near record lows against the US dollar, and is unlikely to rebound any time soon.
-
Chart of the week: a pause in the peso’s declineCharts The Mexican peso has bounced by around 5% from record lows against the US dollar in the past few days. But it has still lost 12% in a year.
