Supply and Demand: Basic economics dictate that higher demand increases the price, while increased supply lowers it. Real-world trading activity directly impacts this.

Market Sentiment: General optimism or pessimism regarding the NOK, related assets, or broader financial markets significantly affects its value.

Interest Rates: Changes in Norwegian interest rates impact the attractiveness of NOK to foreign investors, influencing demand.

Inflation: Higher Norwegian inflation relative to other economies can devalue the NOK, impacting its price against other currencies or assets.

Economic Growth: Strong Norwegian economic data, indicating growth, typically strengthens the NOK, raising the price of assets denominated in it.

Global Events: Major global events, such as wars or financial crises, can cause risk aversion, impacting the value of the NOK as a safe-haven or risk-on asset.

Geopolitical Risk: Political instability or geopolitical tensions involving Norway or impacting its economic partners can weaken the NOK.

Central Bank Policies: Actions and announcements by the Norwegian central bank (Norges Bank) regarding monetary policy influence investor sentiment and NOK value.