The shekel is strengthening today against the dollar and against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.23% against the dollar at NIS 3.604/$ and down 0.13% against the euro at 4.036/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.055% today at NIS 3.612/$ from Monday's rate, and set the shekel-euro rate down 0.333% at 4.041/€.
The shekel is stronger today as both the US Federal Reserve and European Central Bank (ECB) consider more dovish policies. Yesterday ECB president Mario Draghi said that the bank could expand its quantitative easing program. Draghi's comments angered US President Donald Trump who charged Draghi with currency manipulation.
Meanwhile, the US Fed is meeting to consider the interest rate and while it is not expected to announce a cut today, investors will be closely watching for hints of when that is likely to happen.
The Bank of Israel has previously stated that it plans a rate hike this year but the latest developments in the US and Europe casts doubt on whether the plan will be implemented.
Published by Globes, Israel business news - en.globes.co.il - on June 19, 2019
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