Shekel loses more ground

Shekel Photo: ASAP Creative

The dollar is at its strongest against the index of major currencies since September 2020.

In afternoon inter-bank trading, the shekel-dollar rate was up 0.36% against the dollar at NIS 3.229/$ and up 0.19% against the euro at NIS 3.745/€.

Yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.310% from Friday, at NIS 3.217/$, and the representative shekel-euro rate was set 0.011% lower at NIS 3.738/€.

The shekel is being pushed back after continued falls on overseas stock markets, have required Israeli institutional investors to buy foreign currency to cover their international positions.

At the same time the dollar is at its strongest against the index of major currencies since September 2020. However, despite the recent gains by the dollar against the shekel, the Israeli currency is still trading at higher levels against the dollar than for most of 2021.

On Thursday, the Bank of Israel will announce its interest rate decision for the next month. No change from the historic low of 0.1% is expected although, Israeli economist expect the Bank of Israel to start raising interest rates from June 2022.

Published by Globes, Israel business news - en.globes.co.il - on October 5, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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