NOK (Norwegian Krone)

DEFINITION of 'NOK (Norwegian Krone)'

The NOK is the currency abbreviation or currency symbol for the Norwegian krone (NOK), the currency of Norway. The Norwegian krone is made up of 100 øre and is often represented by the symbol kr. The name "krone" means "crown" in English.

The krone is the 14th most traded currency in the world. 

BREAKING DOWN 'NOK (Norwegian Krone)'

The krone replaced the Norwegian speciedaler at a rate of 4 kroner to 1 speciedaler in 1875 when Norway joined the Scandinavian Monetary Union. When then the union was dissolved in 1914, Norway continued to use the krone as a separate currency - the Norwegian krone.

In 1940, when the German occupation began, the krone was fixed to the German Reichsmark, and remained fixed until 1992, although the level of what it was fixed at did fluctuate from time to time. Under mounting pressure from those betting against the krone, the central bank of Norway floated the nation's currency, which it remains today. 

Due to Norway's dependence on the oil industry, the krone is heavily correlated to the price of crude oil. During the oil crisis of 2015, the krone reached its lowest level since 2002, falling 20 percent against the dollar in a period of five months from October 2014 to February 2015, eclipsing its previous low during the Great Recession. 

The krone remains somewhat correlated with its Scandinavian neighbors the Danish krone and the Swedish krone, as well as the Canadian dollar, another currency reliant on the price of oil.