Shekel weaker against dollar after hawkish Fed remarks

Shekels Photo: Shutterstock Vladerina32
Shekels Photo: Shutterstock Vladerina32

The Bank of Israel Monetary Committee has stressed that due to the lower inflationary environment in Israel, the rate would remain at 0.1% or 0.25%, through the end of 2022.

The shekel is weakening against the dollar and euro. In afternoon inter-bank, the shekel exchange rate is up 0.62% against the dollar at NIS 3.112/$ and down 0.60% against the euro at NIS 3.519/€.

On the foreign exchange market yesterday, the Bank of Israel set the representative shekel-dollar rate down 0.032% from Tuesday, at NIS 3.093/$, and the representative shekel-euro rate was set 0.175% higher at NIS 3.498/€.

The dollar is stronger worldwide against most major currencies, except the Euro, after hawkish comments by US Federal Reserve chair Jerome Powell last month were published in the minutes of the Fed's December meeting. In the meeting, Powell and other senior figures spoke about raising interest rates sooner rather than later due to rising inflation and a "very tight" job market.

In contrast, at the Bank of Israel interest rate meeting earlier this week, in which the interest rate was left unchanged at its historic low of 0.1%, the Monetary Committee stressed that due to the lower inflationary environment in Israel, the rate would remain at 0.1% or 0.25%, through until the end of 2022.

Published by Globes, Israel business news - en.globes.co.il - on January 6, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Shekels Photo: Shutterstock Vladerina32
Shekels Photo: Shutterstock Vladerina32
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