The shekel is weakening today against the dollar and strengthening against the euro. In afternoon inter-bank trading, the shekel was up 0.44% against the dollar at NIS 3.255/$ and down 0.51% against the euro at NIS 3.952/€.
The Bank of Israel set the representative shekel-dollar rate 0.123% lower on Friday, at NIS 3.241/$, and the representative shekel-euro rate was set 0.018% higher, at NIS 3.972/€.
After pushing the dollar to a new 12 year low on Friday, the shekel is weaker today against the dollar amid growing global alarm over the new more infectious Covid strain discovered in the UK. Investors are back heading for the safe haven US dollar.
In addition markets are tumbling in Europe and on the TASE with no Brexit trade deal yet achieved. The continued surge in Covid and the realization that the vaccination will provide no respite until after the winter are also dampening investor spirits. In Israel the Tel Aviv 35 Index is down 2.77% after falling 0.93% yesterday.
Nevertheless, the shekel remains essentially strong, despite significant interventions by the Bank of Israel to buy foreign currency in recent weeks. Israel's widening balance of payments surplus and growing direct foreign investment in the country make it likely that the shekel will continue to strengthen.
Published by Globes, Israel business news - en.globes.co.il - on December 21, 2020
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