The Norwegian Krone strengthened against the U.S. dollar in the early European session on Thursday, after Norway's central bank kept its key interest rate on hold and indicated the likelihood of further rate hike in March 2019.

The Executive Board kept the key policy rate unchanged at 0.75 percent, the Norges Bank said in a statement. The decision was in line with economists' expectations.

The bank noted that the outlook and the balance of risks pointed to a gradual interest rate increase in the years ahead. "Our current assessment of the outlook and the balance of risks suggest that the policy rate will most likely be raised in March 2019", Governor Øystein Olsen said.

The Norwegian Krone climbed to a 2-day high of 8.5306 against the greenback, from Wednesday's closing value of 8.5677. Next possible resistance for the Norwegian Krone is seen around the 7.7 region.

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