Prico: Exporters that didn't hedge the shekel against the euro are now being hit.
The shekel is weakening against the dollar and the euro in inter-bank trading this afternoon. The shekel-dollar exchange rate is trading up 0.29% at NIS 3.9395/$ and the shekel is trading up 0.25% against the euro at NIS 4.559/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.928/$, down 0.051% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.548/€, down 0.23%.
Prico CEO Yossi Fraiman said this morning, "In local foreign exchange trading the dollar continues to be traded in the NIS 3.90-3.94/$ band and in doing so has caused a sharp appreciation of the shekel against the euro, a main trading currency for the Israeli economy. Exporters that did not make the efforts to hedge the currency's risk are now taking a big hit in shekel values for their goods. This resembles the hit that exporters took with the dollar during the period when the shekel appreciated from NIS 3.80/$ to NIS 3.40/$.
Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015
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