The shekel is strengthening today against the dollar and stable against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.16% against the dollar at NIS 3.535/$ and down 0.02% against the euro at 3.973/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.028% at NIS 3.541/$ from Tuesday, and set the shekel-euro rate down 0.060% at 4.009/€.
The shekel continues to trade at its strongest levels for 15 months against the dollar and below the key NIS 4/€. Last week the Bank of Israel reiterated its forecast of an interest rate hike during the current quarter of 2019. However, the June Consumer Price Index reading of minus 0.6%, a much bigger fall than expected, means inflation over the past 12 months has fallen below the 1%-3% target range, and makes the chances of a rate hike this quarter much less likely.
On world markets the dollar is weaker on low US Treasury yields, disappointing housing data and growing tensions in the US-China trade talks.
Published by Globes, Israel business news - en.globes.co.il - on July 18, 2019
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