Although the US Federal Reserve cut interest rates by 0.25%, it indicated only two rate cuts in 2025 compared to the four previously expected.
The shekel is weakening sharply today against the US dollar and is strong against the euro. In late morning interbank trading, the NIS-USD exchange rate rose 0.83%, reaching NIS 3.615/$, and the NIS-Euro rate fell 0.01%, reaching NIS 3.762/EUR.
Yesterday, the Bank of Israel set the shekel rate against the representative dollar by 0.444% from Tuesday, at 3.585 shekels/dollar, and the shekel rate against the representative euro was set by 0.442% at 3.763 shekels/euro.
The US dollar is strengthening in global markets today, including against the shekel, after yesterday’s US Federal Reserve meeting. Although the Federal Reserve’s Open Market Committee lowered the borrowing rate by 0.25% to a target range of 4.25% to 4.5%, it signaled smaller future interest rate cuts than expected. This was the third successive rate cut bringing interest rates back to the level they were in December 2022, but according to a ‘dot graph’ matrix of individual members’ future interest rate expectations, there will be only two rate cuts in 2025 compared to four when they were made. Plot updated recently in September.
Published by Globes, Israel Business News – en.globes.co.il – on December 19, 2024
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