Shekel gains despite growth forecast cuts

Shekel Photo: ASAP Creative

The Israeli currency is strengthening despite both the Ministry of Finance and Bank of Israel cutting their GDP growth forecasts for 2019.

The shekel is strengthening today against both the dollar and the euro. In morning inter-bank trading, the shekel-dollar exchange rate is down 0.38% against the dollar at NIS 3.685/$ and down 0.21% against the euro at 4.226/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.135% at NIS 3.699/$ from Monday's rate and set the shekel-euro rate up 0.168% at 4.235/€.

The shekel is strong after the Bank of Israel left the interest rate unchanged at 0.25% earlier this week. The Bank of Israel forecasts another rate hike to 0.5% in the third quarter of 2019 followed by three more hikes in 2020 to 1.25%. The Israeli currency is gaining despite both the Ministry of Finance and Bank of Israel cutting their GDP growth forecasts for 2019. The Ministry of Finance cut its forecast from 3.4% to 3.1%. and the Bank of Israel from 3.4% to 3.2%.

On international forex markets, the dollar is slightly weaker and there is optimism about progress in US-China trade talks.

Published by Globes, Israel business news - en.globes.co.il - on January 9, 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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