The shekel is strengthening today against both the dollar and the euro. In early afternoon inter-bank trading the shekel-dollar exchange rate is down 0.48% against the dollar at NIS 3.478/$ and down 0.14% against the euro at NIS 4.286/€. Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.460% from Tuesday's exchange rate at NIS 3.495/$ and set the shekel-euro rate up 0.264% at 4.292/€. RELATED ARTICLES Prico: BoI must buy $2-3b monthly to keep shekel stable Merrill Lynch, Morgan Stanley recommend buying shekel The shekel is strengthening even though the US Federal Reserve increased the interest rate by 0.25%, as expected, widening the interest rate between the dollar and the shekel. However, the financial pundits doubt Fed Chairman Jerome Powell's ability implement with the planned two more rate hikes this year and three more in 2019, given disappointing US macroeconomic data. The dollar is falling on global currency markets even though US interest rates are far more attractive than those of the euro, sterling band yen. Many described Powell's first Fed statement as unconvincing and "hesitantly hawkish," and there are also concerns that President Trump's trade tariffs will further hit the US economy. Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2018 © Copyright of Globes Publisher Itonut (1983) Ltd. 2018
