Shekel loses more ground after upbeat Fed remarks
The shekel is weakening today against the dollar and strengthening against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is up 0.27% against the dollar at NIS 3.687/$ and down 0.34% against the euro at 4.282/€, Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.355% at NIS 3.677/$ from Tuesday's rate and set the shekel-euro rate down 0.100% at 4.296/€.
The dollar is stronger on international forex markets after the US Federal Reserve's monthly announcement yesterday, which stressed the strength of the US economy, making it clear that more rate hikes are on the way. Thew dollar is trading at 16 month highs against the shekel.
Earlier this week, Israel's Ministry of Finance warned that second quarter growth slowed to 2-2.5% in the second quarter after being above 4% in the three previous quarters. However, the Ministry of Finance added that the sluggish growth was only a temporary correction due to a sharp fall in car imports after very strong car imports in the first quarter.