The shekel is strengthening against the dollar and against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate was down 0.21% at NIS 3.4888/$ and down 0.44% against the euro at NIS 3.9685/€.
On Friday, the Bank of Israel set the shekel-dollar representative rate up 0.172% at NIS 3.496/$ and set the shekel-euro rate up 0.085% at 3.939/€.
However, the brief depreciation of the Israeli currency at the end of last week has been short-lived with the shekel again advancing. After weakening worldwide last week, the dollar hit a 10 month low against the euro. But the US currency has begun this week with a slight recovery against the euro, although not enough to see it gaining against the shekel. The dollar remains below the key NIS 3.50/$ level at a rate not seen since August 2014 during Operation Protective Edge in Gaza.
With the shekel gaining 9% against the dollar this year, the Bank of Israel and government are now coming under intense pressure from industrialists to take measures that will weaken the shekel and help exporters.
At a meeting last week with Bank of Israel Governor Dr. Karnit Flug and senior treasury officials, Manufacturers Association of Israel president Shraga Brosh warned that the continued strengthening of the shekel would result in factory closures and layoffs.
Published by Globes [online], Israel business news - www.globes-online.com - on July 3, 2017
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