Shekel weakens despite forecasts of gains

Shekel  / Photo: Shutterstock
Shekel / Photo: Shutterstock

Goldman Sachs predicts the shekel will strengthen to NIS 3.45/$ any maybe more if the Bank of Israel does not intervene of forex markets.

The shekel is weakening today against the dollar and against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate is up 0.36% against the dollar at NIS 3.497/$ and up 0.40% against the euro at 3.916€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.144% today at NIS 3.484/$ from Friday's rate, and set the shekel-euro rate up 0.203% at 3.901/€.

The shekel is weakening for the second successive day despite expectations that it will continue strengthening. Earlier this week, Goldman Sachs' Research Department published a report entitled "The Unstoppable Shekel" predicting that the Israeli currency would strengthen to NIS 3.45/$ over the next six months, and maybe more if the Bank of Israel does not intervene on the forex market.

On Thursday, the Central Bureau of Statistics will publish the July Consumer Price Index (CPI), which is expected to be unchanged, thus maintaining the annual inflation rate below the 1%-3% annual target range.

Published by Globes, Israel business news - en.globes.co.il - on August 13, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Shekel  / Photo: Shutterstock
Shekel / Photo: Shutterstock
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