The US currency is up against the shekel after hitting an 18-month low earlier in the week.
The shekel is weakening in morning inter-bank trading against the dollar and against the euro. The shekel-dollar exchange rate is up 0.85% at NIS 3.779/$ compared with yesterday's representative rate, and the shekel-euro rate is up 0.15% at NIS 4.342/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.027% from Monday's rate at NIS 3.747/$, and the representative shekel-euro rate up 0.786% at NIS 4.336/€.
The dollar has strengthened after hitting an 18 month-low against the shekel earlier this week. Hope of strong US job data due to be published on Friday, which would rekindle interest rate hike expectations from the US Federal Reserve, is improving dollar sentiment. However, if the shekel once again begins strengthening against the US currency, the expectation is that the Bank of Israel will intervene by purchasing foreign currency to help exporters.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2016
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