Shekel loses ground after reaching NIS 3.40/$

Shekel Photo: ASAP Creative

Market analysts believe there is a 50-50 chance of a rate cut this month.

The shekel is weakening today against the dollar and stable against the euro. In early afternoon inter-bank trading the shekel is up 0.34% at NIS 3.435/$ and down 0.69% against the euro at NIS 3.734/€.

Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.117% from Tuesday at NIS 3.423/$, and the representative shekel-euro rate was set up 0.064% at NIS 3.735/€.

The shekel has moved away from NIS 3.40/$ after bowing to the dollar's safe haven global strength due to concerns about the coronavirus outbreak. However, the shekel remains at its 18-year strongest against the euro.

Economic experts now say that there is a 50-50 chance that the Bank of Israel will cut the interest rate at its meeting in two weeks despite previous assertions by the Governor Pof. Amir Yaron that it would not cut the interest rate. Global concerns about the economic damage of the coronavirus outbreak may have changed that position. In an interview with "Globes," Deputy Governor Andrew Abir, a member of the Monetary Committee, refused to comment on the matter.

Published by Globes, Israel business news - en.globes.co.il - on February 13, 2020

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

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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