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Shekel rebounds in volatile forex market

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Head of Financial Planning Poria Or Poria: We see the shekel strengthening in the long term.


After a sharp decline yesterday, the shekel is rising strongly today against the US dollar and the euro. In late morning interbank trading, the shekel fell against the dollar by 1.01% to NIS 3.685/USD, and the shekel fell against the euro by 0.63% to NIS 4.087/EUR.

Yesterday, the Bank of Israel set the shekel-dollar exchange rate at 3.722 shekels per dollar, up 1.389% from Tuesday, and the shekel-euro exchange rate at 4.113 shekels per euro, up 1.498%.

Despite the shekel’s rise today, it is still weak by 0.7% against the dollar this week. Or Poria, head of financial planning firm Poria, says there are two factors behind the shekel’s decline against the dollar. “First, the sharp declines in the markets on Tuesday put pressure on the Israeli currency and led to a strengthening of the dollar, which is considered a safe haven currency in times of uncertainty. Second, domestically, the lack of progress in formulating a hostage deal and the ongoing fighting in our region are further weakening the shekel, which is suffering from economic and political uncertainty in Israel.”

He added: “Given our belief that the shekel will strengthen against the dollar in the long term, we see any rise in the dollar exchange rate as an opportunity to buy and sell the shekel.”

This article was published in Globes, Israeli Business News – en.globes.co.il – on September 5, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.



Shekel Image source: Shutterstock Vladerina32

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