FxWirePro: Norwegian Krone declines as oil falls on supply concerns
The Norwegian Krone declined after rising to a 3-week peak earlier in the session, weighed down by a drop in oil prices. Crude oil prices slumped, extending losses for the second straight session as U.S. producers began …
The Norwegian Krone declined after rising to a 3-week peak earlier in the session, weighed down by a drop in oil prices.
Crude oil prices slumped, extending losses for the second straight session as U.S. producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.
International benchmark Brent crude was trading 1.1 percent down at $42.30 per barrel by 1149 GMT, having hit a high of $43.54 on Friday, its highest since September 18. U.S. West Texas Intermediate was trading 1.3 percent lower at $40.04 a barrel, after rising as high as $41.44 on Friday, its highest since September 18.
Moreover, a rebound in the dollar index further dented the bid tone around the Norwegian currency.
The dollar nudged up as riskier currencies eased after negotiation on a U.S. stimulus package ran into resistance.
USD/NOK trades 0.3 percent higher at 9.1497, having touched a low of 9.1208 earlier, its lowest since September 21.
Immediate resistance is located at 9.1997 (55-EMA), close above could take it till 9.2384.
On the downside, support is around 9.0964, break below could take it till 9.0594.
