The shekel has strengthened in options trading against the dollar. The shekel-dollar exchange rate fell 0.25% in morning trading to NIS 4.003/$, its lowest level since May, when the exchange rate fell below the NIS 4/$ threshold.
Friday’s shekel-dollar representative rate was set at NIS 4.013/$. The shekel-dollar exchange rate has fallen 7.5% from its NIS 4.34/$ peak on July 30.
The Bank of Israel said in its interest rate announcement last Monday, “The underlying forces acting to strengthen the shekel of the shekel - notably the surplus in the current account of the balance of payments and foreign investment in the economy- continue to apply. In addition, the real exchange rate of the shekel against the basket of currencies weighted in accordance with Israel’s foreign trade is presently at about its level at the beginning of the year.”
The Bank of Israel predicts 5.1% GDP growth this year and note that, according to Central Bureau of Statistics figures, the unemployment rate will fall from the current 7.6% of the civilian labor force to 7.4% by year-end. It also predicts, “The budget performance so far this year is consistent with a deficit of less than 1% of GDP in 2007.”
Published by Globes [online], Israel business news - www.globes.co.il - on September 30, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007