The US Dollar / Krone is the most popular pair to trade the Norwegian currency. The price of the Krone is influenced by changes in interest rates and oil prices. The pair saw a lot of volatility between 2002 and 2008 because of the changes in oil prices and the global financial crisis. Norway's economy largely benefits from trade, and a lot of that trade is done with the UK and the Euro-zone. Therefore, the Krone is significantly affected by changes in those economies.
The Norwegian Krone has weakened after Norges Bank once again kept interest rates on hold at 0.5% at its March meeting. Expect timid oil prices to heighten the Krone’s woes.