In foreign currency trading today (Monday), there was a lively demand for foreign currency in view of expectations for a lowering of the interest rate as part of a combined economic move. The expectations relate to a marathon economic debate being conducted at the Prime Minister's Office, with the participation of Prime Minister Benjamin Netanyahu, Minister of Finance Dan Meridor and Governor of the Bank of Israel Prof. Yaakov Frenkel.
The dollar exchange rate rose today by 0.27% to a record-breaking NIS 3.403, due to a lively demand for foreign currency. This is the first time the dollar has broken the psychological NIS 3.4 barrier. The currency basket exchange rate rose 0.2% to NIS 3.6761, and now stands at 6.82% below the mid-rate. This is the biggest daily devaluation rate recorded in relation to the currency basket since the beginning of the year. *
The Bank of Israel did not intervene in today’s foreign currency trading, and has not done so in the past few days, since foreign currency supply has braked and demand has appeared. It will be noted that, for the first time since the beginning of the year, the currency basket exchange rate has detached itself from the lower limit of the fluctuation band.
Bank trading today registered its ups and downs but on the whole, demand was greater than supply. This morning’s trading opened on especially heavy demand for foreign currency and the dollar traded at a level of NIS 3.41. The currency basket traded at a level of 6.5%-6.6% below the mid-rate. In the afternoon, this gave way to light supply and the currency basket reverted to a level of 6.85% below the mid-rate.
The German mark rose 0.08% to NIS 1.975. The Pound Sterling rose 0.26% to NIS 5.522. The French Franc was up 0.12% and the Japanese yen was down 0.1%.
Since the beginning of the year, the dollar has risen by 4.7%. The German mark has fallen 5.8%, the French Franc is down 5.6% and the Japanese yen is down 4%.