Shekel hits nine year high

The shekel has hit a nine-year high against the dollar. The shekel-dollar exchange rate fell 0.6% in morning trading to NIS 3.918/$. Yesterday, the representative rate was set at NIS 3.941/$, down 0.4% from the day before. Since August, the shekel-dollar exchange rate has risen 10% and fallen back again.

By way of comparison, at the current exchange rate of NIS 3.918/$, NIS 1 is worth 25.52 cents. When the exchange rate hit its recent high of NIS 4.34/$, the shekel was worth 23.04 cents.

At the same time, the shekel is continuing to depreciate against the euro. The shekel-euro exchange rate rose 0.03% in morning trading to NIS 5.7344/�.

Excellence Nessuah chief economist Shlomo Maoz told "Globes" that the dollar's weakness on international markets is an equal factor with domestic Israeli factors affecting the shekel-dollar exchange rate. The shekel is also strengthening against other currencies.

Maoz also noted that the shekel's appreciation is affecting Israel's low technology and tourism industries, resulting in a rise in the unemployment rate to 7.8%, even as labor productivity in the economy as a whole is rising.

Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2007