Reykjavik

wiktionary

ref

From Icelandic Reykjavík(“bay of smokes”).

etymonline

ref

Reykjavik

capital of Iceland, literally "bay of smoke," from Old Norse reykja "to smoke" related to reykr "smoke, steam" (see reek (n.)) + vik "bay" (see viking). So called from the natural hot springs there. Its settlement is said to date from 9c., but it was not established as a town until 1786.