Shekel slide continues into June

• Published date: 01 June 2023
• Publication title: Globes (Rishon LeZion, Israel)

Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.162% from Tuesday, at NIS 3.715/$, and the representative shekel-euro rate was set 0.364% lower at NIS 3.967/€

After gaining on Tuesday, the shekel has resumed its slide against the dollar and is trading against the US dollar at levels not since the start of the Covid pandemic in March 2020, as political and security uncertainties weigh on the Israeli currency despite Israel's strong macroeconomic data.

The shekel weakened by 2.6% against the dollar in May and earlier this week Bank of Israel Governor Prof. Amir Yaron warned that the depreciation of the Israeli currency is fueling inflation in Israel and could result in more rate hikes. The shekel has weakened by 6% against the dollar since the start of the year.

Earlier this week...