Norwegian Krone Extends Decline Against Dollar After Oslo Bomb Explosion

The Norwegian krone slumped versus most of 16 major peers tracked by Bloomberg after an explosion rocked central Oslo, shattering windows at the Prime Minister’s office and injuring several people.
A bomb caused the blast, a police officer told Bloomberg near the scene. Norway’s Prime Minister Jens Stoltenberg is safe, spokesman Oeivind Oestang said by phone.
“We still don’t know much about this bomb, how many have been injured and so forth, but the knee-jerk reaction in the market is to sell the Norwegian krone,” said John Hydeskov, chief analyst at Danske Bank A/S in London. “It shouldn’t have a huge foreign-exchange effect.”
The krone fell 1 percent to 5.4534 per dollar and was at 5.4103 to the greenback at 4:33 p.m. in London, snapping three days of gains. It weakened 0.4 percent to 7.8179 per euro before strengthening 0.2 percent to 7.7713 to the euro.
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.