The shekel is strengthening against the dollar and euro at the start of the last week of 2021. In afternoon inter-bank, the shekel exchange rate is down 0.51% against the dollar at NIS 3.133/$ and down 0.74% against the euro at NIS 3.545/€.
On the foreign exchange market on Friday, the shekel-dollar representative rate was set 0.032% lower, at NIS 3.149/$, and the shekel-euro representative rate was set 0.084% higher, at NIS 3.571/€.
The shekel is strengthening today after depreciating 1.1% against the dollar last week and 1.2% against the euro. The shekel is strengthening following rebounds on global stock markets. As usually happens when international stock markets rise, Israeli institutional investors with major overseas investments buy shekels and sell foreign currency to hedge their positions, thus strengthening the shekel.
Leader Capital Markets chief economist Jonathan Katz said that markets are rising on the reassessment that the Omicron variant of Covid is not as dangerous as first thought. In addition most economic data is positive including a rise in orders for goods, and private consumption. In Israel unemployment continues to fall, exports are rising despite the strengthening of the shekel, and inflation remains well below the levels being seen in Western Europe and the US.
Published by Globes, Israel business news - en.globes.co.il - on December 27, 2021.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.