Shekel weakens as fear grips forex markets

Shekel  / Photo: Shutterstock

As markets tumble and concern about global recession grows, investors have rushed towards safe haven currencies.

The shekel is weakening today against the dollar and against the euro. In late morning inter-bank trading, the shekel-dollar exchange rate is 0.76% against the dollar at NIS 3.515/$ and up 0.45% against the euro at 3.919/€. Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.114% today at NIS 3.489/$ from Tuesday, and set the shekel-euro rate down 0.477% at 3.902/€.

The shekel is losing ground today as recession fears grip global markets and investors rush for the save haven of the dollar. Yesterday the NYSE and Nasdaq fells 3% as US bond yields in some sectors fell below zero for the first time since 2008. Earlier in the day, Germany had reported that its economy contracted in the second quarter of 2019.

Later today, the Central Bureau of Statistics will publish the July Consumer Price Index (CPI), which is expected to be unchanged, thus maintaining the annual inflation rate below the 1%-3% annual target range.

Published by Globes, Israel business news - en.globes.co.il - on August 15, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Shekel  / Photo: Shutterstock
Shekel / Photo: Shutterstock
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