Gaza ceasefire boosts shekel

Shekel  / Photo: Shutterstock

The Israeli currency is stronger than when the rocket fire from Gaza began on Tuesday.

The shekel is strengthening today against the dollar and against the euro following the truce announced this morning by Palestine Islamic Jihad. In afternoon inter-bank trading the shekel-dollar exchange rate is down 0.37% at NIS 3.482/$ and down 0.52% against the euro at NIS 3.829/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.456% today at NIS 3.495/$ from Tuesday's exchange rate, and set the shekel-euro rate down 0.512% at 3.870/€.

The shekel has been boosted by the announcement this morning of a ceasefire by Palestine Islamic Jihad in Gaza. While the Israeli currency initially lost ground on Tuesday when Islamic Jihad began firing rockets in central Israel, it quickly recovered even when the rocket fire was at its fiercest and is now stronger than when the latest skirmish began.

Tomorrow the Central Bureau of Statistics will announce the Consumer Price Index (CPI) reading for October. It is expected to be high, making an interest rate cut by the Bank of Israel later this month unlikely.

Published by Globes, Israel business news - en.globes.co.il - on November 14, 2019

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

Shekel  / Photo: Shutterstock
Shekel / Photo: Shutterstock
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