Reykjavík (Smoke Bay) is the capital and largest city in Iceland.
Its latitude, at 64°08' N, makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay. With a population of around 120,000 (and over 200,000 in the Greater Reykjavík Area), it is the heart of Iceland's economic and governmental activity.
Reykjavík is believed to be the location of the first permanent settlement in Iceland, which Ingólfur Arnarson is said to have established around 870 C.E. Until the 18th century, there was no urban development in the city location. The city was founded in 1786 as an official trading town and grew steadily over the next decades, as it transformed into a regional and later national centre of commerce, population, andgovernmental activities.
Temperatures very rarely drop below −15 °C (5 °F) in the winter. This is because the Icelandic coastal weather in winter is moderated by the warm waters of the Gulf Stream. The climate issubpolar oceanic (Koppen Cfc), and the city is on the northern edge of the temperate zone. The city's coastal location does make it prone to wind, however, and gales are common in winter. Summers are cool, with temperatures fluctuating between 10 to 15 °C (50 to 59 °F), sometimes exceeding 20 °C (68 °F).
