The drop in the shekel-dollar exchange rate has intensified over the course of the day, with the exchange rate down 2.4% by early afternoon to NIS 3.478/$. The shekel-euro rate is also down sharply, falling a nearly identical 2.45% to NIS 5.5098/€.
Yesterday afternoon, the Bank of Israel issued a statement in which it clarified that Governor of the Bank of Israel Prof. Stanley Fischer "estimated that the shekel would strengthen over the course of the next few years, not in the upcoming days". The central bank explained that in over a short time period it is not possible to predict the movement in the exchange rate.
On Sunday, the Governor of the Bank of Israel Prof. Stanley Fischer had claimed that the shekel would continue to strengthen in the near and medium terms.
Later today, the CPI for March will be reported, after the representative exchange rates are set for the day. The index is expected to show a decline of 0.3%, with the annualized rate of inflation running at 2.5%, within the target range of between 1% and 3%.
Yesterday's representative exchange rates were set at NIS 3.565/$, a drop of 0.97% in the shekel-dollar rate, and NIS 5.648/€, a drop of 0.8% in the shekel-euro rate.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2008
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