At the end of January, the euro stood at ISK 143.2, compared to ISK 147.6 at the end of December; the US dollar stood at ISK 128.4, compared to ISK 130.4 at the end of December. The trade-weighted index increased (the króna appreciated) by 2.6% in January.
The price of the euro dipped below ISK 145 in January for the first time since March 2020, having stayed between 145 and 155 in recent months. We think that the króna is more likely to appreciate further rather than depreciate again in the coming months.
Turnover in the foreign exchange market was ISK 25.2b (EUR 173m) in January and increased somewhat between months. The CBI's share of the month's turnover was ISK 3bn (EUR 21m), or 12% of total turnover.
The CBI intervened twice in January. On Wednesday, 5 January 5, it bought EUR 9m and, on Friday, 28 January, it bought EUR 12m. Both times it was reacting to sharp inter-day appreciation of the króna.