The shekel is gaining strongly after the Bank of Israel left the interest rate unchanged at 4.5% on Monday despite the expectations of many that there would be a 0.25% cut.
The shekel is gaining strongly after the Bank of Israel left the interest rate unchanged at 4.5% on Monday despite the expectations of many that there would be a 0.25% cut. This afternoon the Bank of Israel set the representative shekel-dollar rate down 1.096% from Monday, before the holiday for the municipal elections, at NIS 3.609/$, and the representative shekel-euro rate was set 1.45% lower at NIS 3.96/€.
After the rate was set, the shekel continued to strengthen against the dollar in inter-bank trading, falling a further 0.4% against the dollar to NIS 3.594/$ and falling 0.3% against the euro to NIS 3.89/€.
Mizrahi Tefahot Bank chief economist said, "Because of the combination of keeping the interest rate unchanged, which surprised the markets and the optimistic words of US President Biden on achieving a deal within several days. However, looking ahead we see continued fighting on the northern front as well as contradictory estimates on the possibility of a breakthrough on the issues of the hostages."
Published by Globes, Israel business news - en.globes.co.il - on February 28, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
Shekels credit: Shutterstock Vladerina32