Norwegian Krone Could Fall as It Shows Reduced Sensitivity to Elevated Energy Prices -- Market Talk

1140 GMT - The goldilocks environment of higher energy prices and buoyant risk sentiment has likely run its course for the Norwegian krone, Deutsche Bank's Shreyas Gopal says in a note. The sharp rise in energy prices has boosted terms of trade for oil-rich Norway. However, the krone is starting to show reduced sensitivity to energy prices, he says. Meanwhile, the krone's yield advantage looks set to narrow even if the Norges Bank raises rates once more as signaled, he says. Futures activity data suggests the krone could be sensitive to a broader unwinding of carry trades where investors borrow in low interest rate currencies to buy currencies with higher rates. "All up, we like buying euro-krone." The euro trades flat at 10.8084 krone. (renae.dyer@wsj.com)

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September 21, 2026 07:40 ET (11:40 GMT)