Shekel loses ground as markets continue to tumble

shekels
shekels

The Tel Aviv 25 Index was down 2.4% in morning trading as the shekel gave up some of its recent gains.

Amid the resumption of steep falls on global stock markets, the shekel was weaker in morning inter-bank trading today against the dollar and against the euro after nearly a week of sustained appreciation. The shekel-dollar exchange rate is up 0.40% at NIS 3.887/$ compared with yesterday's representative rate, and the shekel-euro rate is up 1.13% at NIS 4.401/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.412% from Tuesday's rate at NIS 3.871/$, and the representative shekel-euro rate down 0.121% at NIS 4.358/€.

Global stock markets in Asia and Europe resumed their sharp falls this morning after yesterday's brief respite. The Tel Aviv 25 Index was down 2.4% at midday.

FXCM Israel said in its morning survey, "After falling NIS 0.12 over the past two weeks, the shekel-dollar exchange rate has successfully stabilized over the past day and even climbed back up slightly to NIS 3.87-3.88/$, after US Federal Reserve Chair Janet Yellen expressed hawkish sentiments to a Congress committee, thus removing for the time being the option of lowering interest rates or even introducing negative interest. She did not rule out that the Fed might raise interest later in 2016 as planned."

"The shekel-dollar's correction upwards does not necessarily reflect a turning point and only rising above NIS 3.90/$ would indicate a change in the balance of power."

Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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