Shekel gains strongly after rate hike

Published date03 October 2022
Publication titleGlobes (Rishon LeZion, Israel)
This afternoon, the Bank of Israel set the representative shekel-dollar rate up 1.129% today from Friday, at NIS 3.5830/$, and the representative shekel-euro rate was set 0.402% higher at NIS 3.4998/€. This is the weakest that shekel has been against the dollar since April 2020, at the start of the economic crisis caused by the Covid pandemic

The shekel began strengthening this afternoon after the Bank of Israel announced a second successive 0.75% rate hike. A 0.5%-0.75% hike had been expected and Bank Hapoalim chief market strategist Modi Shafrir explains that other factors are dictating the direction of the shekel.

He said, "The forex market in Israel is mainly influenced in the long term by the substantial current account surplus and direct investments by foreign organizations in Israel, which support a strong shekel in the long term.

"In the short term, and specifically...

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