Shekel slips against dollar for second day

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative

The shekel is still very strong, trading at levels that are the strongest against the dollar for a year and the strongest against the euro in nearly two years.

The shekel is weakening today against the dollar and strengthening against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is up 0.38% against the dollar at NIS 3.589/$ and down 0.13% against the euro at 4.038/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.478% at NIS 3.575/$ from Monday's rate and set the shekel-euro rate up 0.580% at 4.044/€.

The shekel is still very strong, trading at levels that are the strongest against the dollar for a year and the strongest against the euro in nearly two years. Nevertheless, the shekel has slipped for the second consecutive day against the dollar as traders sell the Israeli currency.

The respite in the appreciation of the shekel is likely to be short lived. The minutes of the most recent Bank of Israel Monetary Committee meeting reveal that the decision to keep the interest rate unchanged was not unanimous with one member wanting a hike. Indications are that a rate hike is coming soon, closing the interest rate gap with the dollar (the US Fed has declared it will not be raising interest rates this year) and strengthening the shekel.

Published by Globes, Israel business news - en.globes.co.il - on April 18, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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