Shekel gains on dollar weakness
The shekel is strengthening today against the dollar and weakening against the euro. In late morning inter-bank trading, the shekel-dollar exchange rate is down 0.48% against the dollar at NIS 3.558/$ and up 0.17% against the euro at 4.184/€, Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.252% from Monday's exchange rate at NIS 3.575/$ and set the shekel-euro rate down 0.086% at 4.176/€.
While the dollar strengthened on world forex markets in May reaching a six month high against a basket of the world's major currencies, it is having a more difficult time in June. The new government in Italy has boosted the euro while President Trump's imposition of trade tariffs is weighing on the US currency.
Meanwhile, the shekel remains robust with the Israeli economy growing at over 4% annually and inflation moving towards the government's target range of 1%-3% annually. This will enable the Bank of Israel to raise interest rates in the final quarter of 2018.