Shekel gains to strongest against dollar since 2008

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative

The Israeli currency is trading at its strongest rate against the dollar since July 2008 and has returned to its strong trading levels before the second lockdown.

The shekel is strengthening today against the dollar and against the euro. In evening futures trading the shekel-dollar exchange rate is down 0.13% at NIS 3.357/$ and down 0.35% against the euro at NIS 3.982/€.

Earlier today, the Bank of Israel set the shekel 0.474% down from Friday at NIS 3.361/$, and the representative shekel-euro rate was set 0.177% lower at NIS 3.996/€.

The shekel is trading at its strongest rate against the dollar since July 2008 and has returned to its strong trading levels before the second lockdown in September as the country gradually reopens.

In addition international stock markets have been lifted by the 'Biden bounce' and today the very positive results from the Pfizer Covid-19 vaccine trial. This means that Israeli investment institutions, which have been selling shekels and buying dollars to support their overseas positions in recent bear markets, are now purchasing shekels back and thus strengthening the Israeli currency.

The Bank of Israel can be expected to resume its intervention and buy foreign currency to weaken the shekel and assist exporters. Between May and August, the Bank of Israel purchased $7.5 billion in foreign currency to weaken the shekel but over the past two months those purchases have fallen to just $880 million.

Published by Globes, Israel business news - en.globes.co.il - on November 9, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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