Shekel gains against dollar amid Fed rate cut expectations

Shekel Photo: ASAP Creative

With US growth under threat, the US Federal Reserve is expected to cut US interest rates.

The shekel is strengthening today against the dollar and stable against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.62% against the dollar at NIS 3.611/$ and unchanged against the euro at 4.061/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.027% from Friday's rate at NIS 3.633/$, and set the shekel-euro rate up 0.311% at 4.062/€.

The dollar has hit a three week low against the world's major currencies on expectations that the US Federal Reserve will cut the interest rate at its next meeting due to concerns about US growth. At the same time, there is a growing belief that the Bank of Israel will raise the interest rate from 0.25% at its next meeting early next month, thus closing the interest rate gap between the shekel and the dollar.

Published by Globes, Israel business news - en.globes.co.il - on June 4, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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