USD/NOK – Live and Historical Rates
The USD/NOK pair is not a major nor a commodity pair, despite the fact that the Norwegian economy is very commodity-reliant. The USD on the other hand is indeed the top major out there. The NOK is not one though. The trading volumes on the pair aren’t particularly significant, which is one of the reasons why the pair is not a major.
The forex chart above illustrates the number of NOK it requires to purchase a USD.
As said above, the USD is indeed the very definition of a major currency. It is the most traded one and it is used by scores of other countries, either officially or de-facto. In addition to that, the USD is also the world’s top reserve currency and the prices of all the major commodities (like gold and oil) are also traded in USD. Controlled by the Federal Reserve, the USD was the first currency to start floating in the 70s. Since then, scores of other currencies followed suit.
The NOK may not be among the most traded currencies like the USD, but it has seen quite an increase in trading volumes since it was taken off the USD peg and became floating. In 2009, it set the unlikely record of becoming the 10th most traded currency in the world. Natural gas and petroleum are the main products of the Norwegian economy, and beyond doubt, the biggest factors lending the Krone its strength. Norway is not an EU member and though it has close trading relationships with various EU countries, it isn’t expected to adopt the EUR.
Due to Norway’s close ties with the EU, the USD/NOK pair has a close correlation with the EUR/USD. There’s little direct trade between the two countries. Commodity price-swings may present trading opportunities on the pair.