Shekel continues to weaken against dollar

Shekel Photo: ASAP Creative

Prico: The Bank of Israel continues to intervene in foreign currency trading with the bank compelled to buy dollars in order to halt the appreciation of the shekel.

The shekel is weakening today against the dollar and stable against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate was up 0.42% against the dollar at NIS 3.302/$ and the shekel-euro rate was up 0.02% at NIS 3.972/€.

Yesterday, the Bank of Israel set the representative shekel-dollar rate 0.091% lower from Friday, at NIS 3.288/$, and the representative shekel-euro rate was set 0.396% lower, at NIS 3.971/€.

The shekel has continued to weaken since the unexpected announcement by the Bank of Israel last month that it will buy $30 billion in foreign currency in 2021. In the nearly three weeks since the announcement, the shekel has lost over 6% against the dollar from NIS 3.1160/$ to NIS 3.302/$.

Prico Risk Management and Investments CEO Yossi Fraiman said, "The Bank of Israel continues to intervene in foreign currency trading with the bank compelled to buy dollars in order to halt the appreciation of the shekel below NIS 3.27/$. Breaking beyond that level might bring about the realization of stop loss and that major selloff of dollars by local and foreign traders. Worldwide, the dollar continues to strengthen against the major currencies. The positive trend on global stock markets is contributing to the supply of foreign currency by institutional investors who have hedged their investments on world markets."

Published by Globes, Israel business news - en.globes.co.il - on February 2, 2021

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

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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