Shekel stronger against dollar on US-EU trade talks
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 0.28% against the dollar at NIS 3.631/$ and up 0.08% against the euro at 4.261/€, Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.219% at NIS 3.642/$ from Tuesday's rate and set the shekel-euro rate down 0.311% at 4.257/€.
The dollar is weaker on international forex markets after President Donald Trump and European Commission President Jean-Claude Juncker stepped back from a trade war yesterday and agreed to hold talks on lowering trade tariffs.
Meanwhile in Israel, despite tensions along the Gaza border in the south and the Golan Heights in the north, investors are not flustered and are more focused on the basic strength of the Israeli economy. The economy remains strong with the Central Bureau of Statistics last week revising first quarter growth rate estimates up to 4.7% (from 4.5%) on an annualized basis.
Inflation seems to be returning 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.