{"id":109817,"date":"2021-01-23T19:58:21","date_gmt":"2021-01-23T19:58:21","guid":{"rendered":"https:\/\/precoinnews.com\/?p=109817"},"modified":"2021-01-23T19:58:21","modified_gmt":"2021-01-23T19:58:21","slug":"fight-for-worlds-top-currency-plays-out-among-nordic-neighbors","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/fight-for-worlds-top-currency-plays-out-among-nordic-neighbors\/","title":{"rendered":"Fight for World\u2019s Top Currency Plays Out Among Nordic Neighbors"},"content":{"rendered":"<p>Norway\u2019s krone looks poised to clinch the title of the world\u2019s best performing major currency this year, as a blistering rally that catapulted its neighbor to the top spot in 2020 begins to fade.<\/p>\n<p>Bolstered by a nascent global economic recovery and the prospect of a hawkish shift by the central bank, the Norwegian currency is set to recover and gain around 2% against the euro through December, according to the median estimate of analysts in a Bloomberg survey.<\/p>\n<p>That\u2019s the most among Group-of-10 peers, beating the projected advance for Sweden\u2019s krona, which took a hit this week amid speculation the central bank was moving to cap the currency\u2019s strength after it climbed almost 5% last year.<\/p>\n<p>The diverging outlooks underscore a shift in global currency markets as investors begin to look beyond the pandemic. While the krona enjoyed the tailwinds of its central bank keeping rates on hold as others slashed borrowing costs to prop up their economies, commodity-linked currencies are now coming back into vogue as the world recovers.<\/p>\n<p>\u201cThis year should be the strongest year for the Norwegian krone in a decade,\u201d said Petr Krpata, a strategist at ING Groep NV. If the growth outlook remains supportive, he expects the central bank could raise rates in 2022, adding that any hint of a move could push the currency some 1% higher to 10.10 against the euro by the middle of this year.<\/p>\n<p>Danske Bank A\/S\u2019s Stefan Mellin, a senior analyst at the Danish lender, expects the currency to advance to the 10.20 mark, citing a rebound in global economic growth. The world economy is set to grow 5.2% in 2021 after shrinking 4.4% last year, according to forecasts compiled by Bloomberg.<\/p>\n<table>\n<colgroup>\n<col class=\"news-rsf-table-string\"><\/colgroup>\n<tbody>\n<tr>\n<th class=\"news-rsf-table-string\">Read More:<\/th>\n<\/tr>\n<tr>\n<td>\n<ul>\n<li><meta itemprop=\"suid\" content=\"QMT8YUDWX2PS\"><meta itemprop=\"type\" content=\"StoryLink\">Norway GDP Suggests Year-End Hit From Virus Milder Than Feared<\/li>\n<li><meta itemprop=\"suid\" content=\"QMVTEUT1UM1E\"><meta itemprop=\"type\" content=\"StoryLink\">Krona Selloff Fans Speculation Over Riksbank\u2019s FX Strategy<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Meanwhile, Brent oil futures have rallied around 8% since December, and on Wednesday briefly rose past $57 a barrel, the highest level is almost a year, a boon for Norway\u2019s oil-exporting economy. Earlier this month, Goldman Sachs Group Inc. said it now expects oil to rally to $65 a barrel by the summer, compared with year-end previously.<\/p>\n<p>Momentum for the krone\u2019s advance is already building. The currency is up 1.9% so far this year against the euro, the most in the G-10, followed closely by other commodity-linked currencies such as the Australian and Canadian dollars.<\/p>\n<h3>Growth Bet<\/h3>\n<p>As the krone rallied, Sweden\u2019s krona dropped to the bottom of the table among peers. It\u2019s fallen around 0.5% this year, weighed down by the Riksbank\u2019s decision this week to revamp its foreign reserves. While the central bank says a plan to start selling the currency isn\u2019t motivated by any monetary policy objective, the move ignited bets it may use the new setup to cap krona gains to revive inflation.<\/p>\n<p>That fits with mounting concerns among policy makers worldwide about <meta itemprop=\"suid\" content=\"QMIJMJT0AFB4\"><meta itemprop=\"type\" content=\"StoryLink\">currency strength hurting the economic revival. Yet for their part, investors are not worried about the krone\u2019s recent strength for now, given it\u2019s only just recovering from its biggest slide in four years.<\/p>\n<p>\u201cWe still believe the krone is undervalued. It\u2019s one of our favored currencies to outperform this year,\u201d said Lee Hardman, a strategist at MUFG Bank.<\/p>\n<p><em>\u2014 With assistance by Love Liman<\/em><\/p>\n<p>Source: <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-01-15\/fight-for-world-s-top-currency-plays-out-among-nordic-neighbors?srnd=premium\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Norway\u2019s krone looks poised to clinch the<\/p>\n","protected":false},"author":3,"featured_media":109816,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fight for World\u2019s Top Currency Plays Out Among Nordic Neighbors - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/fight-for-worlds-top-currency-plays-out-among-nordic-neighbors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fight for World\u2019s Top Currency Plays Out Among Nordic Neighbors - 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