Shekel weaker as dollar boosted by positive US data

Shekel Photo: ASAP Creative

US Fed Reserve chair Jerome Powell has welcomed the faster than expected bounce back but warned on "extraordinary uncertainty."

The shekel is weakening today against the dollar and against the euro. In afternoon inter-bank trading the shekel-dollar exchange rate was up 0.79% at NIS 3.463/$ and up 0.21% against the euro at NIS 3.883/€.

Yesterday, the Bank of Israel set the shekel 0.029% lower from Friday at NIS 3.436/$, and the representative shekel-euro rate was set 0.412% higher, at NIS 3.875/€.

The shekel is weakening today against the dollar after positive data in the US economy and housing market in particular has boosted the US currency. Nevertheless, US Federal Reserve Chair Jerome Powell has described the situation as "extraordinarily uncertain" and warned that the Covid-19 pandemic must be kept under control. He said, "We have entered an important new phase and have done so sooner than expected. While this bounce back in economic activity is welcome, it also presents new challenges - notably, the need to keep the virus in check."

Despite weakening today, the shekel is nevertheless has been trading at levels similar to before the virus crisis throughout June, well below the NIS 4.50/$ level. The Israeli economy remains shaken but stable with consumer spending only slightly below regular levels despite lingering high unemployment of 21%.

Published by Globes, Israel business news - en.globes.co.il - on June 30, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shekel Photo: ASAP Creative
Shekel Photo: ASAP Creative
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