The shekel is strengthening today against the dollar and against the euro. In afternoon inter-bank trading, the shekel was down 0.31% against the dollar at NIS 3.293/$ and down 1.08% against the euro at NIS 3.896/€.
On Monday, before the elections, the Bank of Israel set the representative shekel-dollar rate 0.426% higher from Friday, at NIS 3.303/$, and the representative shekel-euro rate was 0.380% higher, at NIS 3.939/€.
Despite the election results showing no clear path for either Prime Minister Benjamin Netanyahu or opposition leader Yair Lapid to form a new government, and the inevitable continuation of political instability and possibly fifth elections, the shekel remains strong. The forex market had probably already priced in another stalemate.
Over the past two months the shekel-dollar exchange rate has stabilized around NIS 3.30/$, while the shekel is at its strongest for two months against the euro, with the euro-bloc struggling against a third wave of Covid-19.
Published by Globes, Israel business news - en.globes.co.il - on March 24, 2021
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