The shekel-dollar rate has hit a new 3-year low but there has been no intervention from the Bank of Israel.
The shekel is strengthening against the dollar and weakening against the euro today. In late morning inter-bank trading, the shekel-dollar exchange rate was down 0.50% from yesterday's representative rate at NIS 3.575/$ and up 0.06% against the euro at NIS 4.022/€.
Yesterday, Bank of Israel set the shekel-dollar representative rate up 0.111% today compared with yesterday's rate at NIS 3.593/$, and the representative shekel-euro rate was set down 0.409% at NIS 4.019/€.
In recent months, the Bank of Israel has intervened in foreign currency trading to weaken the shekel in order to assist exporters. On every occasion that the rate has slipped below NIS 3.60/$, the Bank of Israel has purchased hundreds of millions of dollars in foreign currency to push the exchange rate higher. However, the shekel has now been blow the benchmark NIS 3.60/$ level for the past week, and only shows signs of falling further, yet the Bank of Israel remains sitting passively on the sidelines.
Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2017
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