Gaza flare-up further weakens shekel

Shekel Photo: ASAP Creative

After weakening strongly on Tuesday with outbreak of the latest fighting, the shekel strengthened slightly yesterday but has resumed its losses today.

The shekel is weakening today against the dollar and against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate was up 0.60% at NIS 3.299/$ and the shekel-euro rate was up 0.23% at NIS 3.984/€.

After weakening strongly on Tuesday, with the outbreak of the latest fighting, the shekel strengthened slightly yesterday when the Bank of Israel set the representative shekel-dollar rate down 0.152%, at NIS 3.279/$, and the representative shekel-euro rate was set 0.531% lower, at NIS 3.975/€.

Earlier this week Leumi analysts Dudi Reznick and Kobby Levi said that those wishing to sell foreign currency and buy shekels should take advantage of the present situation and do so now before the hostilities end and the basic strength of the Israeli economy kicks back in.

Tomorrow the Bank of Israel will announce the Consumer Price Index (CPI) for April with inflation expected to continue rising. In March the CPI rose 0.6%, the highest figure since May 2019, and the Bank of Israel expects inflation to be above 1% in 2021, and in the lower range of its 1%-3% target range.

Published by Globes, Israel business news - en.globes.co.il - on May 13, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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