Shekel gains to strongest for 4-months against dollar

Boosted by expectations of a ceasefire on the northern border, the Israeli currency is also at its strongest for 20 months against the euro.

The shekel is strengthening sharply today against the US dollar and against the euro. In afternoon inter-bank trading the shekel is down 0.76% against the dollar at NIS 3.646/$ and is down 0.42% against the euro at NIS 3.835/€.

Yesterday the Bank of Israel set the representative shekel-dollar rate down 1.448% from Friday, at NIS 3.674/$, and the representative shekel-euro rate was set 0.078% lower at NIS 3.852/€.

The ceasefire agreement between Israel and Lebanon, which is expected to be signed in the next few days, has boosted the shekel, which is at its strongest for over four months against the US dollar and its strongest for 20 months against the euro.

Poria Finance chairman Or Poria said the market is "Operating with expectations for continued progress towards a ceasefire on the northern front. The shekel-dollar exchange rate is trading in the mid-range of the 'familiar' range that has characterized it over the past year, between NIS 3.55 and NIS 3.85/$. This is mainly due to the significant strengthening of the dollar against the leading currencies, which intensified following Trump's election. The euro and pound sterling are currently at a low point this year. In the medium and long term, the assessment remains the same: the leading currencies are expected to weaken significantly (against the shekel)."

Published by Globes, Israel business news - en.globes.co.il - on November 26, 2024.

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