After weeks of volatility, the Israeli currency has stabilized just above the NIS 3.50/$ level.
The shekel is strengthening today against the dollar and against the euro. In afternoon inter-bank trading the shekel-dollar exchange rate was down 0.65% at NIS 3.502/$ and down 0.67% against the euro at NIS 3.838/€.
Yesterday, the Bank of Israel set the shekel-dollar exchange rate down 0.508% from Monday at NIS 3.525/$ and the shekel-euro rate down 0.896% at NIS 3.864/€.
After weeks of volatility in March and April, the Israeli currency has stabilized since the beginning of May just above the NIS 3.50/$ level.
Since the start of the coronavirus crisis, the shekel-dollar rate has tended to be linked to the fortunes of global stock markets. As stock markets fall, Israeli banks and financial institutions need to sell shekels and buy foreign currency to cover their overseas positions, and when they gain the position is reversed. Thus the shekel losses last week as global stock markets tumbled have given way to gains this week as the market recover somewhat. To flatten this roller coaster effect, the Bank of Israel has extended foreign currency credit to Israeli banks and institutions.
Published by Globes, Israel business news - en.globes.co.il - on May 20, 2020
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Shekel Photo: ASAP Creative