The representative rate for the shekel against the euro rose 1.59% today to NIS 5.4165/€, as the European currency weakened on world markets. The shekel has strengthened by 2.8% against the euro since the beginning of April. Compared with the peak rate of NIS 5.7225/€, the rate has fallen by 5.7%. The shekel continued to strengthen against the euro after the representative rate was fixed, and was traded at about NIS 5.41/€.
Despite the strengthening of the dollar on overseas markets, the US currency has been fairly stable against the shekel. The representative shekel/dollar rate rose just 0.07% today, to NIS 4.523/$. This compares with a rate of NIS 4.6/$ a year ago.
On world markets, the dollar rose to a four-month peak against the euro of $1.2/€. The dollar also strengthened against the Japanese yen, the pound sterling, and the Swiss franc today.
In Israel, the shekel strengthened 0.03% against the yen, 0.70% against the pound, and 1.29% against the Swiss franc. The basket of currencies fell 0.45%, following surplus supply in foreign currency trading.
The local foreign exchange market resumed activity today after a five-day break because of the Passover holiday. Trading volumes were moderate, at $430-460 million, less than half the daily average of the first three months of 2004.
Officials at economic ministries in Jerusalem estimate that the Consumer Price Index for March will be unchanged, or show a fall. Most analysts project a fall of 0.1-0.3% in the CPI, following tax cuts.
For the past twelve months, inflation was minus 2.5%. Inflation for 2004 is expected to total about 1%, assuming that the price indices start rising from April onwards.
Published by Globes [online] - www.globes.co.il - on April 13, 2004