The shekel rallied considerably against the major currencies on Thursday, but it fell back again in foreign exchange trading on Friday. The representative shekel-US dollar rate was set 1.27% higher at NIS 3.6590 on Friday, while the shekel-euro rate was set 1.01% higher, at NIS 3.8752/€. The dollar-shekel rate began 2023 at NIS 3.53, and the shekel-euro rate at just over NIS 3.7/€. RELATED ARTICLES Treasury chief economist warns on judicial reform risks Financial Stability C'ttee meets amid market volatility BofA sees Bank of Israel intervening on forex market Israeli banks advise increasing exposure to stocks abroad US bank Wells Fargo says that the shekel is being affected by fears over the Israeli government’s changes to the legal system, and that the weakness of the currency is at odds with strong economic fundamentals. The banks sees the shekel strengthening to NIS 3.4/$ by the end of the first quarter. The reason for the volatility in the shekel is still not entirely clear. Among the explanations offered is that the Bank of Israel intervened in the market to prevent the shekel from weakening too much, but market sources rule that out completely. In a market review last week, Bank of America said that the Bank of Israel might intervene to moderate the high volatility, but that this would carry a price in the form of reduced liquidity in the market." Published by Globes, Israel business news - en.globes.co.il - on February 26, 2023. © Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
