The USD/NOK pair declined to the lowest level since October 14 as traders reacted to the rising number of Covid-19 cases in Europe. The pair is also reacting to the overall higher crude oil prices. It is trading at 9.1856, which is below last week’s low of 9.300.
Norway adds measures to limit Covid spread
Most European countries have reported higher number of Covid-19 cases in the past few days. This increase has led many people to fear that the region will go through a double recession this year.
Norway, too, has reported more coronavirus cases. The country has so far confirmed more than 18,000 cases and more than 279 deaths. These numbers are substantially lower than those of neighbouring Sweden, which has reported more than 110k cases and more than 5,000 deaths.
In a statement yesterday, the Norwegian government unveiled some measures to prevent the disease from spreading. The government will limit indoor public gatherings to 50 people. It will also reduce the number of guests that people can invite at home to just 5.
Most importantly, the Norwegian government said that it will implement quarantine measures. Members of the EU countries with rising number of cases will have to quarantine for 10 days. Before the new rules, people did not have to quarantine, but they needed to take tests before leaving their countries. Also, the government will make wearing masks in public mandatory.
These measures pose significant risks to the economy. For example, because of the new quarantine measures, the tourism industry will take time to recover. Similarly, other industries like hospitality, retail, and manufacturing will be affected if the new restrictions continue.
