Shekel pushes euro to new 18-year low

Shekel Photo: ASAP Creative

Despite the possibility of a rate cut from 0.25% to 0.1%, the shekel continues to appreciate.

The shekel is strengthening today against the dollar and against the euro. In afternoon inter-bank trading the shekel was down 0.28% against the dollar at NIS 3.418/$ and down 0.42% against the euro at NIS 3.699/€ - an 18-year low.

Yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.175% from Friday at NIS 3.428/$, and the representative shekel-euro rate was set down 0.250% at NIS 3.716/€.

The shekel is trading at a new 18-year low against the euro and at near two year lows against the dollar.

The Bank of Israel Monetary Committee meets next Monday to decide on the interest rate and there is seen a better than 50% chance that the interest rate will be cut from 0.25% to 0.1%. Inflation is now only 0.3% annually after the lower than expected -0.4% Consumer Price Reading for January.

Despite the possibility of a rate cut from 0.25% to 0.1%, the shekel continues to appreciate. The Israeli economy's fundamentals are very strong with the 2019 GDP growth rate estimate revised upwards to 3.5%, unemployment at a new low of 3.4% and the budget deficit narrowing to 3.2% over the past 12 months from 3.8% at the end of December.

Published by Globes, Israel business news - en.globes.co.il - on February 18, 2020

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

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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