The Norwegian Krone’s dire performance over the past several months has puzzled many market watchers, who argue that the Scandinavian currency is undervalued for many reasons. After all, Norway’s solid economic performance continued in the third quarter with GDP expanding 0.7 per cent. This compares favourably against other developed economies including the Eurozone, where expansion has been much weaker, and even the US, where growth has slowed down to below 2 per cent.