The Bank of Israel today once again intervened in the foreign currency market, buying $200 million in foreign currency in the morning and an additional $50 million in the afternoon. In response, the shekel, which was stable against the dollar in early trading today, depreciated 0.5% against the dollar to NIS 3.945/$, and also weakened 0.4% against the euro to NIS 4.332/€.
The Bank of Israel's intervention comes a day after the shekel appreciated 2.3% against the dollar to NIS 3.926/$ and 1.4% against the euro to NIS 4.314/€. The Ministry of Finance intervened yesterday in the foreign currency market with a dollar-shekel hedging deal in which it indirectly bought dollars, but its intervention had no effect.
Yesterday's shekel surge followed the Bank of Israel's decision against lowering the interest rate or instituting quantitative easing, despite market expectations of aggressive measures on the Bank's part.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2015
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