The shekel is at its weakest against the dollar since early April 2021, reflecting the strength of the US currency on world markets.
The sharp depreciation of the shekel against the dollar continues. In afternoon inter-bank trading, the shekel exchange rate is up 1.06% against the dollar at NIS 3.3269 / $ and up 0.16% against the euro at NIS 3.5197 / €.
Yesterday, the Bank of Israel set the representative shekel-dollar rate up 0.030% today from Monday, at NIS 3,292 / $, and the representative shekel-euro rate was set 0.425% lower at NIS 3,514 / €.
Five reasons why the shekel is weakening
The shekel is at its weakest against the dollar since early April 2021, reflecting the strength of the dollar on world markets, in anticipation of continued rate hikes by the US Federal Reserve to cope with rising US inflation. The dollar is at a five year high against the euro.
The continuing Russia-Ukraine war is also strengthening the US dollar, which is seen as the world’s default safe haven currency.
In addition, the heavy falls on Wall Street yesterday require Israeli institutional investors to sell shekels and buy foreign currency to hedge their overseas positions.
Published by Globes, Israel business news – en.globes.co.il – on April 27, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
Shekels Credit: Shutterstock Vladerina32