Shekel weaker after inconclusive election
The shekel is weakening today against the dollar and against the euro following yesterday's inconclusive Knesset elections. In late morning inter-bank trading, the shekel-dollar exchange rate is up 0.16% against the dollar at NIS 3.544/$ and up 0.36% against the euro at 3.918/€, Trend with reference to Globes reports.
On Monday, the Bank of Israel set the shekel-dollar representative rate up 0.312% at NIS 3.538/$ from Friday's rate, and set the shekel-euro rate down 0.179% at 3.904/€.
The shekel is weaker following the deadlock result in the elections. The shekel has lost ground even though the US Federal Reserve is expected to cut the dollar interest rate today by 25 base points and thus further narrow the interest rate gap between the dollar and the shekel, having already cut US interest rates in July.
Despite the political uncertainty there are strong rises this morning on the Tel Aviv Stock Exchange with the Tel Aviv 35 Index up 0.61% at 1623.42 points. Paz Oil Company Ltd. (TASE:PZOL) is up 3.5% on news that CEO yona Fogel is stepping down but Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is down 1.85% following losses on Wall Street yesterday.