The shekel is strengthening sharply today against the dollar and is firm against the euro. In early afternoon inter-bank trading, the shekel exchange rate is down 1.56% against the dollar at NIS 3.504/$ and up 0.18% against the euro at NIS 3.512/€.
Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.056% from Monday, at NIS 3.559/$, and the representative shekel-euro rate was set 0.340% higher at NIS 3.509/€.
On world forex markets, the dollar has been weakening against the world's major currencies as economists expect the US Federal Reserve to adopt less hawkish policies as the latest economic data show that the Fed's rate hikes are already slowing the economy and reducing inflation.
For its part the shekel has been buoyed by rises on Wall Street over the past few days, compelling Israeli institutional investors to hedge their overseas investments by selling dollars and buying shekels. For a spell this morning the shekel-dollar rate dipped below NIS 3.50/$ for the first time in just over a month.
Published by Globes, Israel business news - en.globes.co.il - on October 26, 2022.
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