Shekel depreciation continues

Shekels Photo: Shutterstock

The shekel-dollar exchange rate is for the time being moving above the significant psychological barrier of NIS 3.60/$, which it breached fleetingly earlier this week.

The shekel continues to weaken against the dollar and against the euro today. In late morning inter-bank trading, the shekel-dollar exchange rate was up 0.12% from yesterday's representative rate at NIS 3.6095/$ and up 0.36% against the euro at 3.9308/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.056% compared with Tuesday's rate at NIS 3.605/$, and the representative shekel-euro rate was set down 0.211% at NIS 3.917/€.

The shekel-dollar exchange rate is for the time being moving above the significant psychological barrier of NIS 3.60/$, which it breached fleetingly earlier this week, without any known intervention from the Bank of Israel. Economists have observed that NIS 3.60/$ has become the Bank of Israel's red line, below which it is not prepared to let the shekel fall. To prevent such a fall, the Bank of Israel has been buying hundreds of millions of dollars in recent week in order to weaken the shekel and help Israeli exporters. The fear is that falling below the NIS 3.60/$ barrier would hasten further falls and strengthening of the Israeli currency.

Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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