The shekel is strengthening today against the dollar and against the euro. In morning inter-bank trading, the shekel-dollar exchange rate is down 0.48% against the dollar at NIS 3.602/$ and down 0.20% against the euro at 4.187/€, Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.166% at NIS 3.619/$ from Tuesday's rate and set the shekel-euro rate up 0.131% at 4.195/€.
The shekel is trading at its strongest against the dollar since June and in early morning inter-bank trading even slipped below the NIS 3.60/$ threshold. The shekel has been strengthening since the Bank of Israel's interest rate decision last week. Even though the Bank of Israel kept the rate at its historical low of 0.1%, where it has been anchored since March 2015 due to Israel's negative inflation environment, the Bank's comments on inflation has raised expectations that a rate hike is imminent.