The shekel is again strengthening against the dollar and the euro. In afternoon inter-bank trading, the shekel-dollar rate is 0.37% lower at NIS 3.852/$, and the shekel-euro rate is 0.49% lower at NIS 4.109/€.
Yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.284% from Monday, at NIS 3.866/$, and the representative shekel-euro rate was set 0.929% lower at NIS 4.129/€.
The shekel is now almost trading at almost the same level against the dollar as on the eve of the war. While depreciating to NIS 4.08/$ last week, since the start of November the Israeli currency has strengthened strongly.
Yesterday the Bank of Israel revealed that it had only bought $8.21 billion in foreign currency in October out of the $30 billion it had allocated to moderate the weakening of the shekel after the start of the war.
Bank Hapoalim chief markets strategist Modi Shafrir stressed that in the event that pressure will increase on depreciating the shekel, due to a security escalation, the Bank of Israel would probably sell more foreign currency to support the shekel.
He said, "Since the start of November, we have seen a renewed and substantial strengthening of the shekel due to the easing of fears of a significant escalation of the war in the northern region, but also due to the sharp increase in the world's stock market indices. As for the more distant future, if after the war there will be a political change and judicial reform will be taken off the agenda, this is expected to lead to further and even considerable strengthening of the shekel."
Published by Globes, Israel business news - en.globes.co.il - on November 8, 2023.
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