The shekel is strengthening today against the dollar and against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.39% against the dollar at NIS 3.695/$ and down 0.40% against the euro at 4.208/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.406% at NIS 3.709/$ from Friday's rate and set the shekel-euro rate down 0.279% at 4.225/€.
The shekel is strengthening against the dollar after being adversely affected by the crisis in Turkey, which sent investors rushing towards the safe haven of the US currency. The Turkish lira has rebounded by about 6% today and the shekel is gaining as the focus is again on the fundamental strength of the Israeli economy.
In Israel, all eyes will be on the consumer price index (CPI) for July, which will be announced tomorrow by the Central Bureau of Statistics. If the trend of recent months continues, with inflation rising towards the government target range of 1%-3%, then the Bank of Israel will be likely to raise interest rates in the coming months above the historical low of 0.1%, where it has been rooted since March 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2018
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