Norway’s Krone Won’t Suffer from PMI Drop, Credit Suisse Says

By Bo Nielsen

Sept. 2 (Bloomberg) -- Norway’s krone won’t suffer long from an unexpected August contraction in the manufacturing industry as the rest of the Scandinavian nation’s economy continues to improve, according to Credit Suisse Group AG.

“Given the recent data releases in Norway have all surprised the market on the upside, and the Norwegian economy should continue to benefit as oil prices drift higher, we doubt such a drawback in PMI is persistent,” Credit Suisse analysts led by London-based Ray Farris wrote in a note today. “We maintain our three-month krone forecast at 8.50 per euro.”

The krone fell 0.1 percent to 8.6750 per euro at 1:37 p.m. in Oslo, after falling as much as 0.5 percent after the manufacturing report was released today.