Now that the Swiss National Bank has said it will cap the franc’s appreciation against the euro, investors are on the lookout for a new safe haven currency.
Attention has turned to the Norwegian krone, with the currency hitting an eight-and-a-half year high of NKr7.4825 against the euro on Wednesday.
Though Øystein Olsen, the governor of Norges Bank, was clear that the central bank would not for now intervene, he did acknowledge that an appreciation could weaken domestic growth.
With interest rates at 2.25 per cent, the central bank has room to loosen policy if the krone’s appreciation proves too heady. But – some argue – it may not have to bother. Read more