The shekel is strengthening today against the dollar and weakening against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.43% against the dollar at NIS 3.562/$ and up 0.17% against the euro at 4.169/€, Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.473% from Tuesday's exchange rate at NIS 3.577/$ and set the shekel-euro rate up 0.219% at 4.162/€.
The dollar has been weaker over the past day against most major world currencies after reaching six-month highs against a basket of world currencies. The euro is stronger, buoyed by hopes of a last ditch agreement in Italy to cobble together a coalition government. Shekel trading in Tel Aviv reflects this split.
The shekel remains strong as the situation calms down on the Gaza border. Strong macroeconomic data with the Israeli economy growing at over 4% annually and the expectation of interest rate hikes in the last quarter as inflation, boosted by higher oil prices, moves up towards the government target of 1%-3% annually, all indicate the bullish prospects of the shekel.