Shekel gains sharply following Fed's dovish remarks

Shekel Photo: ASAP Creative

With President Trump eager for a rate cut, "Bloomberg" reports that he has been telling confidants that he has the authority to replace Fed Chair Jerome Powell.

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 0.95% against the dollar at NIS 3.575/$ and down 0.13% against the euro at 4.039/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.083% today at NIS 3.609/$ from Tuesday, and set the shekel-euro rate up 0.064% at 4.044/€.

The dollar is weaker on world forex markets after dovish remarks about monetary easing by US Federal Reserve Chair Jerome Powell yesterday. Although the Fed did not cut interest rates, there is major speculation that the rate will be cut next month.

There is also uncertainty around the Fed itself. With President Trump eager for the interest rate to be cut sooner rather than later, "Bloomberg" reports that Trump has been telling confidants that he has the authority to replace Powell.

Published by Globes, Israel business news - en.globes.co.il - on June 20, 2019

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

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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