Shekel gains despite security situation

Shekel Photo: ASAP Creative

Prico CEO Yossi Fraiman: Exporters and algorithm-based traders began selling major amounts of foreign currency and halted the continued devaluation of the shekel yesterday.

The shekel is strengthening today against the dollar and against the euro despite the tensions on the border with Gaza. In early afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.23% against the dollar at NIS 3.615/$ and down 0.24% against the euro at 4.092/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.416 at NIS 3.623/$ from Wednesday, before the Purim holiday, and set the shekel-euro rate up 0.061% at 4.102/€.

Prico Risk Management and Investments CEO Yossi Fraiman said, "The security situation alongside domestic foreign currency demand created surplus demand for dollarsa and the devaluation of the shekel to NIS 3.63/$. Around this level, exporters and traders based on algorithms began selling major amounts of foreign currency and halted the continued devaluation of the shekel yesterday."

He added, "The fall in US dollar bond yields has reduced the gap between the shekel and dollar interest rates and supports the strengthening of the shekel in the medium to long term. The lower expectations of future dollar interest rate rises, contributes and supports the major currencies, however, the impact of the UK disorderly exit from the EU continues to see selling of the euro and sterling. 50% of UK exports are to the euro bloc and the three largest EU countries export 33% of their exports to the UK, meaning there is a significant trade-interdependence between the EU and UK and there is an urgent need to have trade arrangements in place before the UK leaves the EU." 

Published by Globes, Israel business news - en.globes.co.il - on March 26, 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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