Norwegian Krone Gains as Softer US Inflation Weighs on Dollar
The Norwegian krone climbed about 1.5% against the weaker US dollar on Tuesday as investors reacted to softer US inflation, even as producer price growth in Norway slowed. Producer prices in Norway increased 14.9% annually in June after May's 24.0% jump, while monthly prices dropped 7.1%, extending May's 1.8% decline, Statistics Norway reported. On the US front, the dollar weakened after June consumer prices fell 0.4% monthly against expectations for a 0.1% decline, while annual inflation slowed to 3.5% from 4.2%, reducing expectations of near-term Federal Reserve interest rate increases. The US Dollar Index, which measures the greenback against six major currencies, fell to a 100.6 level. At the time of writing, USD/NOK was trading at 9.6615, down 1.36%.
The Norwegian krone climbed about 1.5% against the weaker US dollar on Tuesday as investors reacted to softer US inflation, even as producer price growth in Norway slowed.
Producer prices in Norway increased 14.9% annually in June after May's 24.0% jump, while monthly prices dropped 7.1%, extending May's 1.8% decline, Statistics Norway reported.
On the US front, the dollar weakened after June consumer prices fell 0.4% monthly against expectations for a 0.1% decline, while annual inflation slowed to 3.5% from 4.2%, reducing expectations of near-term Federal Reserve interest rate increases.
The US Dollar Index, which measures the greenback against six major currencies, fell to a 100.6 level.
At the time of writing, USD/NOK was trading at 9.6615, down 1.36%.