The shekel is strengthening against the dollar and weakening against the euro today. In afternoon inter-bank trading, the shekel-dollar exchange rate was down 0.35% from yesterday's representative rate at NIS 3.476/$, and up 0.14% against the euro at 4.139/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.086% from Friday's exchange rate at NIS 3.488/$ and set the shekel-euro rate up 0.075% at 4.134/€.
The shekel is stronger today against the dollar, which is weaker against all major currencies on the strengthening of global commodity prices. The shekel-dollar exchange rate is moving towards levels not seen since before the IDF's Operation Protective Edge in Gaza in the summer of 2014. The shekel has gained 10% against the dollar in 2017.
Last week, an analysis by Citi found that the shekel was overpriced by 10%, even taking into account Israel's strong macroeconomic data, the reason usually given for the strength of the shekel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2017
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