Shekel weakens after rate hike

Published date22 November 2022
Publication titleGlobes (Rishon LeZion, Israel)
On Monday, the Bank of Israel set the representative shekel-dollar rate down 0.374% from Friday, at NIS 3.464/$, and the representative shekel-euro rate was set 1.343% lower at NIS 3.545/€, reflecting the weakness of the dollar on international forex markets

Asked about the impact of the rate hike on the shekel-dollar exchange rate, Bank Hapoalim chief strategist Modi Shafrir said, "There will be no noticeable effect because the dollar-shekel rate is currently mainly affected by developments on the world's stock markets, and in the longer term by the basic forces that support a strong shekel. The interest rate differentials do not have a material effect on the shekel-dollar rate today, especially when the interest rate hikes in Israel are quite synchronized with the interest rate hikes in the US."

Mizrahi Tefahot Bank chief markets economist Ronen Menachem said, "Since the last rate announcement in October, the shekel has strengthened by...

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