The shekel is weakening sharply today against the US dollar and the euro. This afternoon the Bank of Israel set the representative shekel-dollar rate up 0.619% at NIS 3.736/$ and the shekel-euro rate was set 0.79% higher, at NIS 4.055/$.
In late afternoon inter-bank trading after the rate was set the shekel weakened further. The shekel-dollar rate is up 1.03% at NIS 3.775/$ and the shekel-euro rate is 1.03% higher, at NIS 4.097/$.
On Friday, following the news that IDF had killed Hamas leader Yahya Sinwar, the Bank of Israel set the representative shekel-dollar rate down 1.329%, at NIS 3.713/$, and the representative shekel-euro rate was set 1.23% lower, at NIS 4.023/€.
Prico Risk Management, Finance and Investments CEO Yossi Fraiman said, "Concern over an imminent security escalation vis-à-vis Iran will push the dollar back above the NIS 3.75/$ level. There is no change in our assessment that the potential for the appreciation of the shekel remains limited, and the dollar may once again test the NIS 3.8/$ level. The rates at which energy products are traded show that the markets do not see a high potential for a security escalation that will harm energy sources, and the assessment is that there will only be a limited response and against the background of the high supply of foreign exchange from exporters required for shekels, and on the other hand, low demand for foreign exchange, the dollar may return to the NIS 3.7/$ level in the near future.
Published by Globes, Israel business news - en.globes.co.il - on October 21, 2024.
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