Shekel gains as inflation climbs
The shekel is strengthening today against the dollar and against the euro. In early afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.55% against the dollar at NIS 3.621/$ and down 0.39% against the euro at 4.249/€, Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.055% at NIS 3.641/$ from Friday's rate and set the shekel-euro rate up 0.658% at 4.266/€.
The shekel is stronger today as inflation returns to the government's 1%-3% target range after the Consumer Price Index (CPI) rose 0.1% in June. This will allow the Bank of Israel to raise the interest rate above the historic low of 0.1%, where it has remained since March 2015.
The Israeli economy remains strong with the Central Bureau of Statistics revising first quarter growth rate estimates up to 4.7% (from 4.5%) on an annualized basis.