Israeli institutional investors have been buying foreign currency to cover their international positions.
In afternoon inter-bank trading, the shekel-dollar rate was up 0.31% against the dollar at NIS 3.214/$ and up 0.14% against the euro at NIS 3.750/€.
On Monday before the Simchat Torah holiday, the Bank of Israel set the representative shekel-dollar rate up 0.094% from Friday, at NIS 3.204/$, and the representative shekel-euro rate was set 0.274% lower, at NIS 3.745/€.
Last week the shekel was trading at its strongest for eight months against the dollar, even after the US Federal Reserve hints that it would start raising the interest rate next year. But the shekel has been weakening this week after sharp falls on overseas stock markets, requiring Israeli institutional investors to buy foreign currency to cover their international positions.
Published by Globes, Israel business news - en.globes.co.il - on September 29, 2021
Copyright of Globes Publisher Itonut (1983) Ltd. 2021
Shekel Photo: ASAP Creative