Live and Historical USD/NOK Rates
This chart shows the value of the United States dollar (USD) against the value of the Norwegian krone (NOK) – how many Norwegian krones are necessary to purchase one United States dollar. The US dollar is a major currency, but the Norwegian krone is not. USD/NOK forms neither a major nor a commodity pair.
The U.S Dollar
As one of the most powerful currencies, it follows that the economy behind the USD is also strong. Major trade partners for the US include Canada, China, Mexico, Japan and Germany and much of that trade happens in the manufacturing, agriculture or finance sectors. The USD’s governing body is the Federal Reserve, and they maintain tight control over the dollar, seeking a balance between inflation and stagnant growth. The major way the Federal Reserve affects USD value is by adjusting the lending interest rate. USD is a floating currency and several commodities, including oil and gold, trade exclusively in USD.
The Norwegian Krone
The Norwegian krone entered the world market in 1875. Like most currencies at this time, NOK was pegged to USD in 1939, but the krone has grown much in volume traded since then. NOK was tenth in most traded currencies in 2009. Norway’s economic growth is most influenced by its natural resources. Petroleum and natural gas were discovered in very large reserves in the North Sea in 1969, and Norway has utilized this store to build NOK value. Norway also capitalizes on natural resources like its fisheries and hydroelectric power. As a result, the krone is a strong commodity currency. To this point, Norway has resisted the transition to the euro.
Naturally, the USD/NOK pair has a degree of correlation with EUR/USD. The US does carry on some trade with Norway, though most of the energy commodities go to the UK or EU member nations. Still, oil is largely traded in dollars, and this alone causes a relationship. The best way to profit from this pair is by watching commodity prices (oil and natural gas). It is also important to be aware of any political possibility that Norway will switch to the euro. If the public will shifted in this direction there would be obvious and significant consequences.