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Mubasher: The Norwegian currency lost Friday against its US counterpart and the single European currency, resulting in the worst weekly performance of this year.
Norwegian crown losses came when President Donald Trump intensified his threats of a trade war with China in the midst of promises of retaliation by China.
The US president announced yesterday that he planned to impose a $ 300 billion tariff on Chinese products by September and also confirmed today that fees could exceed 25% if the negotiations were suspended.
The Norwegian krone was negatively affected by the drop in oil prices, which fell by around 3% this week due to Trump's threats, raising concerns about the impact of global economic growth and demand for commodities.
Norway is the largest producer of petroleum products in Western Europe and receives nearly half of its oil and natural gas exports.
On the economic front, PMI data showed a general decline in activity this week as retail sales fell and credit growth decelerated as unemployment rose more than expected in July.
The Norwegian central bank hinted that it was willing to raise interest rates at the September meeting, after raising it three times in less than a year.
At 10:14 GMT, the Norwegian krona crashed by more than 0.5% against the euro, bringing the single currency to 9,8993 crowns.
The Norwegian currency is expected to record losses of around 2% this week against the euro, which would be the biggest weekly drop in the year.
The Norwegian currency fell 0.4% against the greenback, reaching 8.9246 crowns.
The Norwegian krona also risks losing more than 2.3% against the US dollar this week.
Direct (economy)
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