Shekel strengthens sharply despite Moody's downgrade

The shekel is strengthening sharply today against the dollar and against the euro. In afternoon inter-bank trading, the shekel-dollar rate is 1.15% lower at NIS 3.641/$, and the shekel-euro rate is 1.07% lower at NIS 3.924/€.

Yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.027% from Friday, at NIS 3.683/$, and the representative shekel-euro rate was set 0.023% lower at NIS 3.967/€.

Bank Leumi head of markets strategy Kobby Levi says, "The shekel weakened last Thursday and Friday before publication of the credit rating report on Israel by Moody's to NIS 3.70/$ and NIS 4/€, respectively, probably in anticipation of the credit rating cut. It's a classic case of 'Buy on rumor, sell on news.' The market expected the rating cut and responded to it before it happened, and is correcting itself to the rate at the beginning of last week. In our estimation, the volatility in the financial markets will continue with a range of risk factors on the domestic and global agendas."

Published by Globes, Israel business news - en.globes.co.il - on February 13, 2024.

Shekel strengthens sharply despite Moody's downgrade

Bank Leumi: The market expected the rating cut and responded to it before it happened.