Market traders have told "Globes" that concern for the Netanyahu government as the German submarine probe deepens is weakening the Israeli currency.
The depreciation of the shekel is continuing. In afternoon inter-bank trading, the shekel-dollar exchange rate was up 0.58% at NIS 3.586/$ and up 0.48% against the euro at NIS 4.137/€, a new eight month high.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.564% at NIS 3.565/$ from Monday's rate and set the shekel-euro rate up 1.329% at 4.118/€.
Analysts had been attributing the shekel's weakness this week to the unexpectedly high fall of 0.7% in the June Consumer Price Index (CPI), which has dampened hopes of interest rate hikes beginning next year. However, market traders have told "Globes" that another factor is a growing concern for the Netanyahu government as the probe in the German submarine affair deepens. The dollar bond raised by Tamar Petroleum on the TASE has also caused the shekel to weaken, it is believed.
Published by Globes [online], Israel business news - www.globes-online.com - on July 19, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
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