Shekel gains more ground

Shekel  / Photo: Shutterstock

The 'safe haven' dollar is weakening as political developments in Hong Kong, London and Rome encourage investors' appetite for risk.

The shekel is strengthening today against the dollar and weakening against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.50% against the dollar at NIS 3.509/$ and down 0.21% against the euro at 3.879/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.620% at NIS 3.527/$ from Tuesday, and set the shekel-euro rate up 0.142% at 3.887/€.

The 'safe haven' dollar is weakening as political developments in Hong Kong, London and Rome encourage investors' appetite for risk. In Hong Kong the Chinese authorities have blinked first as Hong Kong leader Carrie Lam has withdrawn the controversial extradition bill. In Italy a more business-friendly center-left coalition is taking shape, which makes a far-right takeover seem much less likely. In Britain, Prime Minister Boris Johnson's plans for a no-deal Brexit have been thwarted by parliament, which is in the process of compelling Johnson to seek an extension to the October 31 Brexit deadline.

In Israel, the Bank of Israel is seen as unlikely to intervene on forex trading while the shekel-dollar exchange rate remains above NIS 3.45/$. Earlier this week, Bank of Israel Governor Prof. Amir Yaron told the "Globes" Governors Conference in Tel Aviv that he would not hesitate to intervene in the forex market, if the shekel moves out of a pre-defined trading band although he did not specify what that band is.

Published by Globes, Israel business news - en.globes.co.il - on September 5, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Shekel  / Photo: Shutterstock
Shekel / Photo: Shutterstock
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