Norwegian krone sinks on surprise rate cut

London

NORWAY'S krone sank by almost a full percentage point on Thursday after a slump in oil prices and demand provoked its central bank into an early and unexpected cut in interest rates, driving the currency to its weakest since mid-2009.

The euro recovered from early losses against the US dollar but the yen was again on the retreat after three days of gains which have allowed many of those betting against it to take some profit and start again.