09.09.202508:10:44UTC+00Norwegian Krone Holds Firm as Labour Secures Second Term

The Norwegian krone remained steady at 10.0 per USD, maintaining its highest position since mid-June, following the re-election of the minority Labour government for a second term. The election was heavily influenced by public anxiety over increasing living costs and the ongoing conflicts in Ukraine and Gaza. This result increases Prime Minister Jonas Gahr Støre's dependence on parliament, as he now has to collaborate with four smaller left-wing parties, rather than just two. This shift could present challenges in effective governance and in passing critical legislation, especially fiscal budgets. During Støre's first term, he grappled with issues like high inflation, increased interest rates, and a series of scandals leading to ministerial resignations due to tax evasion, undisclosed share trading, and ethical breaches. However, a recent cabinet reshuffle and a strengthened focus on foreign policy and security have improved his support.