US Dollar / Norwegian Krone - USD/NOK

 In the context of the Bretton Woods agreements of 1944, the Norwegian krone (NOK) was linked to the American dollar (USD) according to a fixed parity which exchange value was as followed in the middle of the 60’s: USD/NOK = 4,03.

From 1973, when the United States and all the other « great nations » gave up the fixed parities and the gold-convertibility of the dollar, the Norwegian krone has been floating freely in relation with the other currencies, if we exclude two short incursions within the “European Monetary Snake” at the beginning of the 70s, then in the 90s.

Structurally, the external value of the Norwegian krone is strongly linked to the level of the world oil exchange rates, which import and export represent an important part of Norway GDP.

If the fluctuations of the NOK against the euro depend on several elements; this structural definition of the external value of the Norwegian krone seems to determine the fluctuations of the USD/NOK cross observed in the last ten years.

From an exchange value USD/NOK = 9,5641 in November 2000, we observed a continuous decrease of the cross until March 2002 (USD/NOK = 8,8435 on March 25, 2002), a decrease that accelerated until May 2003 (USD/NOK = 6,6767 on May 26,2003).

During a period until the beginning of 2007, the USD/NOK cross kept decreasing but with a so slow rhythm that it gave an impression of stability, and we had the value USD/NOK = 6,4508 in January 2007.

A new fast decrease movement happened until July 2008 (USD/NOK=5.0844 on July 14, 2008).

Between 2002 and 2008, period of a strong increase of the world oil exchange rates, the Norwegian krone appreciated by 43% against the American dollar.

In the context of the exchange rate collapse and the world financial crisis of the Fall of 2008, the re-appreciation of the dollar against the NOK is impressive, and we had the values USD/NOK = 7,1022 by the end of December 2008, but also USD/NOK=7.0249 in March 2009.

With the oil exchange rate strengthening, the adjustment in favor of the Norwegian krone is as fast as the re-appreciation of the dollar was, the cross had the value USD/NOK = 5,6152 at the beginning  of November 2009.