The shekel was weakening today against the dollar and against the euro. In the morning dealings between banks, the shekel exchange rate against the dollar increased by 0.85% to 3.747 US dollars, and the shekel price rose against the euro by 0.75%, at 3.997 shekels / euro.
Yesterday, the Bank of Israel set the representative rate of the shekel in dollars by 0.162% from Tuesday, at 3.715 shekels / dollar, and the representative exchange rate between the shekel and the euro was set by 0.364%, at 3.967 shekels / euro.
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After rising on Tuesday, the shekel has resumed its decline against the dollar and is trading against the US dollar at levels not seen 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 2.6% against the dollar in May. 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 lead to higher interest rates. The shekel has fallen 6% against the dollar since the beginning of the year.
Earlier this week, Goldman Sachs cut its short-to-medium-term shekel forecast on concerns that the ongoing judicial reform saga will negatively impact the Israeli currency. Over the next three months, Goldman Sachs expects the shekel to remain at around 3.70 shekels/dollar, and then over the next year at around 3.60 shekels/dollar. In its previous forecasts, Goldman Sachs predicted that the shekel would move between 3.40-3.50 shekels/dollar over the next year.
Published by Globes, Israel business news – en.globes.co.il – on June 1, 2023.
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