Shekel strengthens further against dollar

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock

The shekel-dollar exchange rate has hit a three-year low.

At the opening of the week's inter-bank trading today, the shekel-dollar exchange rate fell 0.35% in comparison with Friday's representative rate to NIS 3.545/$, a three-year low, while the shekel-euro exchange rate is stable at just under NIS 4/€.

The reasons for the dollar's weakness worldwide, including Israel, are varied. It appears, however, that the poor employment figures published late last week in the US have reduced the likelihood that the US Federal Reserve will raise its interest rate this month or later this year.

In this context, the Meitav Dash brokerage said today that the Fed would raise its interest rate at its upcoming meeting, but stresses that the markets are assigning a low probability to a further interest rate hike this year and the chances of progress in the administration's reforms.

Meanwhile, the Bank of Israel kept its interest rate unchanged last week, and it does not appear that it is likely to change its policy in the foreseeable future.

Referring to the Israeli economy, Meitav Dash writes, "The pace of increase in the Bank of Israel State of the Economy Index has slowed in recent months. We believe that this is not a sign of an economic slowdown. The figures for Israel's exports of services in 2015-2017 have been upwardly revised, which is likely to cause a revision in the growth figures, including the first quarter of 2017."

Published by Globes [online], Israel Business News - - on June 5, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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