Israel's foreign exchange market remains extremely volatile amid fears of an all-out war between Israel and Lebanon. In early afternoon inter-bank trading, the shekel is slightly stronger against the US dollar and slightly weaker against the euro. The shekel-dollar rate is 0.19% lower at NIS 3.772/$ and the shekel-euro rate is 0.10% higher, at NIS 4.204/€.
Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.372% from Friday, at NIS 3.779/$, and the representative shekel-euro rate was set 0.109% lower at NIS 4.20/€.
Due to the escalating situation in the north, the shekel-dollar rate is at levels not seen since the start of August. The shekel-euro rate is higher than it has been since November last year and the shekel-sterling rate has gone above NIS 5/£ for the first time since the summer of 2016 when the UK voted to leave the EU.
Prico Risk Management, Finance and Investments CEO Yossi Fraiman said, "The rise in the escalation in the north has led to demand for foreign exchange and reduced exposure to the shekel - a move that has strengthened the dollar to above NIS 3.78/$. Foreign exchange supply to businesses, which seek to take advantage of the high exchange rates, moderates the intensity of demand and at the current stage pins back the shekel's depreciation above the NIS 3.8/$ level. In our estimation, the shekel's depreciation potential has not yet been exhausted and the dollar may continue to strengthen above the level of NIS 3.8/$."
Published by Globes, Israel business news - en.globes.co.il - on September 24, 2024.
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