The shekel continues to strengthen against the dollar but is weakening against the euro. In early evening futures contracts, the shekel was down 0.45% against the dollar at NIS 3.289/$ and up 0.13% against the euro at NIS 3.961/€.
Earlier today, the Bank of Israel set the representative shekel-dollar rate 0.121% lower from Monday, at NIS 3.304/$, and the representative shekel-euro rate was set 0.257% lower, at NIS 3.955/€.
The shekel continues to appreciate against the dollar and is trading at a rate not seen since July 2008. Prico Risk Management and Investments CEO Yossi Fraiman sees the dollar continuing to weaken and predicts that it could go below the low-point of 2008 of NIS 3.20/$. Other analysts also see the shekel continuing to strengthen against the dollar.
Yesterday the Bank of Israel Monetary Committee kept the interest rate unchanged at its historic low of 0.1%, as expected. No new quantitative easing measures were introduced. The Bank of Israel expects the Israeli economy to shrink 4.5% this year and grow 5.4% in 2021.
Published by Globes, Israel business news - en.globes.co.il - on December 1, 2020
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