Shekel surges after rate left unchanged
"The market sees the war ending soon"
"The market sees the war ending soon"
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