Norwegian krone in a collapse
The moves in sterling and the antipodeans this week were scary, but the collapse in the Norwegian krone is downright scary. USD/NOK jumped to 12.13 in the past 24 hours from 10.50.
The krone is in the unenviable position of being caught in a flight to safety, a dollar squeeze and a collapse in oil prices. It held out reasonably well until the past 24 hours.
With the swoon, NOK is now the worst performing currency in the world this year -- including all the emerging market and exotic currencies. It's down almost 20% year-to-date however it's rebounded almost 6% from the extremes today.
