The shekel has been boosted by stronger than expected Israeli growth data.
The shekel is strengthening this morning against the dollar and is flat against the euro. In morning inter-bank trading, the shekel was down 0.41% against the dollar from yesterday's representative rate at NIS 3.775/$, a new three month low, and was up 0.01% against the euro at NIS 4.273/€. The Israeli currency has been boosted by stronger than expected growth data - 3.7% in the second quarter, and higher than expected inflation the Consumer Price Index rose 0.4% in July.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.424% from yesterday's rate at NIS 3.791/$, and the representative shekel-euro rate was set up 0.440% at NIS 4.272/€.
FXCM Israel said in its morning survey, "After falling below NIS 3.80/$ and falling to its lowest level on Tuesday since mid-May, the shekel-dollar exchange rate recovered slightly yesterday to NIS 3.78-3.79/$, following publication of the US Fed minutes, which revived interest rate hike expectations in the US. The dollar is likely to be dependent on US macroeconomic data in the coming weeks. Only climbing back above the technical level of NIS 3.80/$ would give the dollar the momentum to move higher against the shekel.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2016
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