The shekel weakened today against the dollar and strengthened against the euro as markets went into turmoil after British voters unexpectedly decided to leave the EU and UK Prime Minister David Cameron resigned. Stock markets fell strongly in Europe and on the opening on Wall Street, albeit more moderately, and the Tel Aviv Stock Exchange, which does not trade on Fridays, can be expected to fall sharply on Sunday.
The referendum result boosted the dollar worldwide but weakened European currencies and this was reflected in today's foreign currency trading in Tel Aviv. The Bank of Israel set the shekel-dollar representative rate up 1.622% from Thursday's rate at NIS 3.885/$, and the representative shekel-euro rate was set down 0.795% at NIS 4.343/€. The shekel strengthened against sterling by 6.214% with the rate falling to NIS 5.34/£.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.753% from Wednesday's rate at NIS 3.823/$, and the representative shekel-euro rate was set down 0.140% at NIS 4.353/€.
FXCM Israel said in its morning survey, "The shekel-dollar rate rose above NIS 3.90/$ before falling back but continued panic in the market is expected to push the shekel-dollar rate higher."
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2016
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