Icelandic króna in rapid decline Skip to content

Icelandic króna in rapid decline

The Icelandic króna (ISK) has been in rapid decline; on Thursday morning alone it dropped by three percentage points. The currency has depreciated by 13 percent since it peaked on July 19.

According to analysts at Glitnir Bank, the primary reason for the drop in exchange rate is trouble in the US real estate market. Investors are avoiding using currencies with high interest rates to lower their risk, reports.

Stocks have also plummeted in tandem with the króna. The share price of the telecommunication company Teymi dropped by eight percent on Thursday and the share price of Atlantic Petroleum by 7.5 percent.

Other companies listed on the OMX Nordic Stock Exchange in Iceland have also dropped. Stock in the investment company Exista went down by 5.5 percent, while the Faroese Eik Bank dropped by five percent and Icelandair was down by four percent.

No company increased in value on Thursday morning with the selected shared index ICEX-15 dropping by four percent.

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