Shekel sharply weakens as markets tumble

Poria Financial Planning: The medium and long-term forecasts remain unchanged, and continue to point to a significant strengthening of the shekel against the world's major currencies.

After reaching its strongest for two years against the US dollar last week, the shekel is weakening sharply today against both the dollar and the euro. In early afternoon inter-bank trading the shekel-US dollar exchange rate is up 1.14% at NIS 3.616/$, and the shekel-euro rate is up 1.19%, at NIS 3.796/€.

On Friday, the Bank of Israel set the representative shekel-dollar rate 0.506% higher, at NIS 3.575/$, and the representative shekel-euro rate was set 1.291% higher, at NIS 3.751/€.

Poria Financial Planning chairman Or Poria noted that, "The shekel is weakening against the major currencies this morning, likely as a result of a combination of a correction to the sharp increases recorded in recent weeks, alongside sharp declines in global stock markets. These declines are affecting the shekel, which exhibits a negative correlation with market trends."

He added, "However, the medium and long-term forecasts remain unchanged, and continue to point to a significant strengthening of the shekel against the world's major currencies."

Following large falls in Wall Street futures as Chinese AI startup DeepSeek rocked global technology stocks Monday, raising questions over US technological dominance, the Tel Aviv 35 Index is down 2.27% at 2,463.54 points and he Tel Aviv 125 Index is down 2.31% at 2,499.56 points.

Published by Globes, Israel business news - en.globes.co.il - on January 27, 2025.

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