With the US Federal Reserve expected to cut the interest rate later this week, the shekel is strengthening today against the dollar and against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.24% against the dollar at NIS 3.518/$ and down 0.32% against the euro at 3.913/€.
The Bank of Israel set the shekel-dollar representative rate up 0.085% on Friday at NIS 3.526/$, and set the shekel-euro rate down 0.003% at 3.926/€.
The shekel continues to trade at its strongest levels for 15 months against the dollar and at its strongest against the euro since June 2017. The strength of the Israeli economy and expected rate cuts in the US and Europe have all strengthened the shekel.
Leader Capital Markets Yonatan Katz macroeconomist Yonatan Katz wrote in his weekly survey, “The fact that both the European Central Bank and the US Fed are planning to cut the interest rate while in contrast the Bank of Israel is still deliberating about raising the interest rate supports the continued strengthening of the shekel.”
He added, “The continued pressure from the appreciation of the shekel is likely to moderate inflation.”
Published by Globes, Israel business news – en.globes.co.il – on July 29, 2019
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