Norwegian krone strengthens significantly against Swedish krona

The Norwegian krone has strengthened the most among G10 currencies this year, while the Swedish krona has seen the largest decline. According to Bloomberg data, Norwegians now receive approximately 14.5 percent more for their currency in Sweden compared to the start of the year.

Olav Chen, senior portfolio manager at Storebrand Asset Management, attributes this divergence to higher interest rates and energy prices in Norway, contrasted with a weak Swedish economy. While Norway's policy rate reached 4.25 percent in May, the Swedish Riksbank's rate stands at 1.75 percent. Chen notes that Sweden has experienced weaker economic growth, lower wage development, and overall poorer conditions for households compared to Norway.