Icelandic Króna Continues to Appreciate Skip to content

Icelandic Króna Continues to Appreciate

The Icelandic króna has appreciated for the third day in a row since inter-bank trade commenced when the króna was floated on Thursday last week, by almost 25 percent in total. The exchange rate index has now dropped below 193 points.

EUR 1 currently costs around ISK 146, but mid-last week it cost almost ISK 187. USD 1 is currently traded for ISK 113 and DKK 1 costs around ISK 20, Morgunbladid reports.

The appreciation of the króna influences mortgages in foreign currencies; the capital of such loans decreases while the króna strengthens. This development is also expected to lower inflation.

Furthermore, a stronger króna affects pricing since the price of imported goods drops with the appreciation of the króna.

The price of fuel continued to decrease yesterday. The price of one liter of gas has not been lower since January 2008 and the price of one liter of diesel oil is comparable to what it was in April of this year.

Click here to read more about the development of the ISK.

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