The shekel is weakening this morning against the dollar and strengthening against the euro. In morning inter-bank trading, the shekel was up 0.23% against the dollar from yesterday's representative rate at NIS 3.777/$, a new three month low, and was down 0.18% against the euro at NIS 4.262/€.
Over the past week, the Israeli currency has been boosted by stronger than expected growth data - 3.7% in the second quarter, and higher than expected inflation - the Consumer Price Index (CPI) rose 0.4% in July.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.344% from Monday's rate at NIS 3.768/$, and the representative shekel-euro rate was set down 0.030% at NIS 4.270/€.
Last week, the shekel-dollar exchange rate broke below the NIS 3.70-3.80/$ trading band in which it has been moving since May, and market sources now expect the Bank of Israel to purchase foreign currency to halt the dollar's slide against the shekel in order to help exporters.
Published by Globes [online], Israel business news - www.globes-online.com - on August 24, 2016
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