Shekel gains as markets rebound

Shekel Photo: ASAP Creative

Bonds are rising strongly on the TASE after yesterday's commitment by the Bank of Israel to buy NIS 50 billion worth of government bonds.

The shekel is strengthening today against the dollar and against the euro. In afternoon inter-bank trading the shekel-dollar exchange rate was down 1.67% at NIS 3.6363/$ and down 0.34% against the euro at NIS 3.9372/€.

Yesterday, the Bank of Israel set the representative shekel-dollar rate 2.335% lower at NIS 3.597/$, and the representative shekel-euro rate was set 2.661% lower, at NIS 3.871/€.

The Tel Aviv Stock Exchange has reversed some of the recent falls today and the Tel Aviv 35 Index is currently up 7.55% at 1259.61 points. Bonds are also rising strongly on yesterday's commitment by the Bank of Israel to buy NIS 50 billion worth of government bonds. The Tel Bond 20 Index is up 2.51% at 332.70 points.

The Israeli currency has been rebounding strongly since the end of last week when the Bank of Israel said that it will provide up to $15 billion in liquidity to the banks from its $130 billion foreign exchange reserves. The program will relieve the shortage of dollars created in the banking system created by demand from banks and financial institutions to increase their collateral for overseas positions and by purchases by financial institutions forced to reduce their foreign currency hedges on overseas investments in derivatives, following a steep decline in the value of these investments.

Published by Globes, Israel business news - en.globes.co.il - on March 24, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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