Norway's Krone Extends Drop Versus Euro as Rate Cut to 5.25%

By Bo Nielsen

Oct. 15 (Bloomberg) -- Norway's krone extended its decline against the euro after the country's central bank cut the benchmark interest rate by half a percentage point to 5.25 percent.

The currency dropped 0.8 percent to 8.6069 per euro by 2:15 p.m. in Oslo, from 8.5365 yesterday. The krone fell 0.7 percent against the dollar, to 6.3155.

The reduction in the rate, which matched the prediction in a Bloomberg survey of economists, was the first since March 2004.

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