[ad_1]
The shekel is strengthening today against the dollar and weakens against the euro. In the late morning, the shekel-dollar exchange rate fell 0.67% against the dollar, to 3.708 NIS and 0.15% against the euro, to 4.2195 / €.
Yesterday, the Bank of Israel set the representative rate of the shekel-dollar currency up 0.134% to 3.733 NIS / $ against the rate on Tuesday and set the rate of the shekel-euro currency down 0.140 % to 4,213 / €.
The interest rate gap between the shekel and the dollar seems to be abating. Earlier this week, the Bank of Israel Monetary Committee raised Israel's key interest rate to its all-time low of 0.1%, where it has been anchored since March 2015 at 0.25%, its first rate increase since June 2011.
In the United States, where the key rate is 2% to -2.25%, the US Federal Reserve announces a slowdown in its expected rate increases following the virulent criticism of President Donald Trump. Last night, Fed Chairman Jerome Powell described the current level of US rates as "just below the neutral position", strongly suggesting that he might have abandoned the project of three rate hikes additional by the end of 2019.
In Israel, badysts do not expect any further rate hikes until 2019. Pross Risk Management and Investments Chief Executive Officer Yossi Fraiman said: "We believe that the Bank's interest rate hike Israel will be very cautious because of the sharp drop in energy prices, the December CPI will be weak, even negative, and the annual inflation rate will reach the lower end of the price stability target set by the government, which will mark the start of the next rate hike. "In the last quarter of the year, many companies tend to transfer their foreign exchange earnings to Israel, which has contributed in the past to a appreciation of the shekel. With the slowdown in the third quarter, the sharp rise in imports of goods in the first half and the limited supply of foreign currency in the last two months, we believe that the Bank of Israel will prefer to test the level of activities in the services sector before further interest rate increases, it would be very surprising to see additional rate increases in the first quarter of 2019, given the current situation. "
Posted by Globes, Economic News in Israel – www.globes.co.il – November 29, 2018
© Copyright Globes Publisher Itonut (1983) Ltd. 2018
[ad_2]
Source link
