Prico: As we get closer to the date of the Supreme Court hearing on the reasonableness standard, the shekel-dollar exchange rate may react nervously.
The shekel has been strengthening today against the dollar and against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is down 1.03% at 3.655/$ and the shekel-euro rate is down 1.55% at NIS 4.010/€.
On the foreign exchange market yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.539% from Friday, at NIS 3.693/$, and the representative shekel-euro rate was set 0.056% higher at NIS 4.074/€.
Prico Risk Management, Finance and Investments CEO Yossi Fraiman said, "Supply of foreign currency for salary and tax payments, alongside lively activity by local institutions working to change the composition of the investment portfolio, has created an excess supply and has led to a weakening of the dollar against the shekel. In our estimation, the local currency market is expected to continue its roller coaster ride, in a wide range of currencies. As we get closer to the date of the Supreme Court hearing on the reasonableness standard, the shekel-dollar exchange rate may react nervously out of fear of a crisis and conflict between authorities and a constitutional crisis. The appreciation of the shekel contributes to lowering price pressures, and a falling index may also support a decision not to hike the shekel interest rate on the eve of the holidays."
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
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