The shekel is weakening today against the dollar and is strengthening against the euro. In early afternoon inter-bank trading, the shekel exchange rate is up 0.92% against the dollar at NIS 3.573/$ and down 0.67% against the euro at NIS 3.478/€.
Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.283% from Monday before the elections, at NIS 3.540/$, and the representative shekel-euro rate was set 0.086% higher at NIS 3.501/€.
On world forex markets, the dollar has been strengthening against the world's major currencies after the US Federal Reserve hiked the interest rate by 0.75% for the fourth consecutive time. The move has also pulled stock markets down, further weakening the shekel against the dollar as institutional investors are required to sell shekels and buy dollars to hedge their overseas investments. On the other hand, the first few days of the month tends to see exporters and tech companies need to sell dollars and buy shekels to pay their employees.
The results of Israel's elections seems to have affected the market less as both the outgoing government and the likely incoming government led by Benjamin Netanyahu proposed similar macroeconomic policies, and some analysts have suggested that investors are grateful for a decisive result.
Published by Globes, Israel business news - en.globes.co.il - on November 3, 2022.
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