The shekel is weakening today against the dollar and strengthening against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is up 0.46% against the dollar at NIS 3.705/$ and down 0.40% against the euro at 4.219/€.
The Bank of Israel set the shekel-dollar representative rate up 0.299% at NIS 3.694/$ on Friday and set the shekel-euro rate down 0.817% at 4.266/€.
The shekel-dollar exchange rate is being influenced today by the Turkish lira crisis as global investors flee towards safe havens with little enthusiasm for other currencies. However, the euro has been negatively impacted by the Turkish crisis with investors fearing that the troubles of the Turkish economy will spill over into its European neighbors.
In Israel, all eyes will be on the consumer price index (CPI) for July, which will be announced on Wednesday by the Central Bureau of Statistics. If the trend of recent months continues, with inflation rising towards the government target range of 1%-3%, then the Bank of Israel will be likely to raise interest rates in the coming months above the historical low of 0.1%, where it has been rooted since March 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on August 13, 2018
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