Nordic Currencies: Norway's Krone Gains Before Jobless Figures

By Bo Nielsen

Aug. 27 (Bloomberg) -- Norway's krone gained versus the dollar, snapping three days of declines, before data that will probably show the country's jobless rate held close to the lowest level in two decades in June.

The Norwegian krone climbed to 5.3935 at 9:18 a.m. in Oslo from 5.4143 yesterday and traded at 7.9251 per euro, from 7.9346.

Norwegian unemployment held at 2.5 percent in June, a report from Statistics Norway will show, according to the median estimate of 15 economists in a Bloomberg survey. The report will be released at 10 a.m. in Oslo.

Sweden's krona rose against the dollar, ending a three-day decline, after a report showed August consumer confidence rose in August from a 13-year low. The Swedish krona rose to 6.3675 per dollar from 6.4003 yesterday. It was little changed at 9.3790 per euro.

The consumer confidence index increased to minus 16.5 from minus 18.2 in July, the Stockholm-based National Institute of Economic Research said on its Web site today. The gauge was expected to rise to minus 17, according to the median estimate of 13 economists in a Bloomberg survey. The manufacturing confidence index fell to minus 12 in August from minus 11 in July.

In other trading, Iceland's krona rose to 82.69 per dollar, from 82.89 yesterday, before data that may show consumer prices increased 14.6 percent in the year ended August, from 13.6 percent in July, according to a Bloomberg survey. The report will be released at 9 a.m. in Reykjavik.

Nordic government bonds were mixed, with the yield on Sweden's 5.25 percent note due March 2011 falling 4 basis points, or 0.04 percentage point, to 4.24 percent. The yield on Norway's 6 percent government note maturing May 2011 rose 1 basis point to 5.013 percent. Yields move inversely to bond prices.

To contact the reporter on this story: Bo Nielsen in Copenhagen at bnielsen4@bloomberg.net