Shekel loses ground

The shekel is weakening against the dollar and against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate was up 0.5% at NIS 3.511/$ and up 0.34% against the euro at NIS 3.988/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.086% at NIS 3.493/$ from Friday's rate and set the shekel-euro rate down 0.299% at 3.974/€.

The shekel may have halted its appreciation today but it is too early to tell if this is the start of a new trend. In recent months the Israeli currency has been strengthening to levels not seen since August 2014 against the dollar. With the shekel gaining 9% against the dollar this year, the Bank of Israel and government are now coming under intense pressure from industrialists to take measures that will weaken the shekel and help exporters.

In the wake of the closure of the Visonic and Sugat factories in Kiryat Gat with over 500 layoffs, Manufacturers Association president Shraga Brosh has warned that more closures can be expected if action is not taken to weaken the shekel.

Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2017

Shekel loses ground

The shekel-dollar exchange rate has moved back above the key NIS 3.50/$ level.