Shekel still gaining against dollar

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock

The shekel-dollar rate is moving towards new three-year lows despite the widening interest rate gap between Israel and the US.

The shekel is again strengthening against the dollar and weakening against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate was down 0.69% at NIS 3.512/$ and up 0.11% against the euro at NIS 3.957/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.141% at NIS 3.536/$ from Friday's rate and set the shekel-euro rate down 0.111% at 3.952/€.

The shekel-dollar exchange rate is moving towards new three-year lows despite the widening interest rate gap between Israel and the US. Last week's US Federal Reserve decision to raise interest rates - its fourth hike in the last 18 months - leave US interest rates more than 1% higher than in Israel. However, worldwide the dollar has been weakening on poor US data about orders of durable goods.

For nearly one month now, the Bank of Israel has been sitting on the sidelines, and not intervening in foreign currency trading to weaken the shekel and help exporters. In April and May, the Bank of Israel bought over $2 billion in foreign currency, intervening every time the exchange rate went below NIS 3.60/$.

Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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