Shekel-dollar rate at 3-year low

Shekels Photo: Shutterstock

As the shekel-dollar rate is at its lowest since September 2014, the Bank of Israel is expected to intervene to buy foreign currency.

The shekel- dollar exchange rate is at a three-year low. The Bank of Israel set the shekel-dollar representative rate down 0.333% on Friday at NIS 3.593/$. This is the lowest rate since September 2014. In futures shekel-dollar trading, the rate has fallen by a further 0.47% to 3.576/$.

The dollar has been falling in value worldwide due to the political problems faced by President Donald Trump. The shekel remains strong despite disappointing growth figures for the first quarter published last week by the Central bureau of Statistics, which showed the Israeli economy growing at an annual rate of just 1.4%.

When foreign currency trading resumes tomorrow all eyes will be on the Bank of Israel, which over the past few months has intervened in trading to buy foreign currency every time the shekel-dollar exchange rate goes below NIS 3.60/$.

The euro, however, remains somewhat stronger with EU economies picking up and a sense of relief after Emmanuel Macron defeated far-right Marine Le Pen in the French presidential elections. The euro was set 0.247% down on Friday at NIS 4.002/€ after moving above NIS 4.00/€ last week for the first time in three months.

Sterling fell 0.76% against the shekel on Friday to NIS 4.664/£ and although higher than in recent months, it remains 17% below its pre-Brexit referendum rate against the shekel last June.

Published by Globes [online], Israel business news - www.globes-online.com - on May 21, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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