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Oily currencies wobble; Norwegian krone hits 9-month low

The Norwegian krone has fallen to its weakest level in more than nine months, as falling oil prices put pressure on the currencies of oil exporters.

The nokkie, as it is affectionately known, is off 0.6 per cent against the euro today, at 9.4712 per euro, its weakest level since early August.

Norges Bank’s decision today to keep interest rates on hold had little impact on the currency this morning, as the decision was widely expected. However, the krone has since stumbled, coinciding with accelerating falls in the price of oil.

Brent crude, the international benchmark, fell below $50 a barrel to its lowest level of 2017 early this afternoon, a day after US data showed crude inventories fell by less than expected.

Having strengthened as oil prices recovered last year, the krone has since given up the majority of its 2016 gains, falling more than 4 per cent against the euro so far this year.

The drop in oil prices was also weighing on the Russian rouble on Thursday. At publication time it was 0.9 per cent weaker against the dollar, at 57.88 per dollar.

The Canadian dollar, however, was steadier, edging up slightly from the 14-month lows hit earlier this week.