Kursøkning

Kursøkning is a term used in Danish to describe an increase in the market value of a currency relative to others, i.e., an appreciation of the exchange rate. In common usage, kursøkning refers most often to the strengthening of a nation’s currency. The term can also appear in broader contexts to indicate rising prices or rates linked to changes in currency value, but this is less common.

Causes of kursøkning include higher interest rates attracting capital inflows, stronger economic growth, improved balance of payments, commodity price shifts, and changes in investor sentiment. Currency values are determined in foreign exchange markets, where supply and demand for currencies set rates. A currency appreciates when demand for it increases or supply decreases.

Measurement and effects: Kursøkning is observed through bilateral or effective exchange rate quotes. A depreciation is the opposite movement. A stronger currency reduces import costs and can dampen domestic inflation, but it can also reduce export competitiveness and affect tourism and corporate earnings. Central banks monitor currency movements as part of monetary policy and macroeconomic stability.

Economic significance and examples: A continued kursøkning can shift the relative price of imports and exports, alter trade balances, and influence inflation trajectories. For instance, if the Danish krone strengthens against the euro from 7.45 to 7.25 per euro, imports become cheaper for Danish buyers, while Danish exporters may face tougher price competition abroad.

See also: exchange rate, inflation, monetary policy, exchange rate regime.