The shekel is strengthening today against the dollar and against the euro. In afternoon inter-bank trading, the shekel exchange rate is down 0.77% against the dollar at NIS 3.448/$ and down 0.23% against the euro at NIS 3.756/€.
Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.202% from Monday, at NIS 3.475/$, and the representative shekel-euro rate was set 0.381% lower at NIS 3.765/€.
The US Federal Reserve is expected to announce a 0.25% rate hike this evening but this is far from the major factor driving foreign exchange trading today in Tel Aviv. The shekel is gaining strongly against the dollar, partly out of the global weakness of the US currency, and partly because of the strong gains on Wall Street over recent days, requiring Israeli investment institutions to buy shekels to hedge their overseas positions.
Concerns that the government's planned judicial reform could harm the shekel have not yet impacted forex trading.
Published by Globes, Israel business news - en.globes.co.il - on February 1, 2023.
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