Shekel rebounds despite rising rocket count
The shekel is strengthening today against the dollar and against the euro even though rockets are continuing to be fired at Israel from Gaza. In late morning inter-bank trading the shekel-dollar exchange rate is down 0.20% at NIS 3.504/$ and down 0.25% against the euro at NIS 3.858/€, Trend with reference to Globes reports.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.343% at NIS 3.511/$ from Monday's exchange rate, and set the shekel-euro rate up 0.218% at 3.868/€.
Commenting on the impact of the security situation on the shekel exchange rate, Prico Risk Management and Investments CEO Yossi Fraiman said, "At first the uncertainty of the security situation caused demand for the dollar. Sales of dollars from the start of the month are over and now we see the market mainly reacting to the security situation with the shekel depreciation by 0.6% yesterday morning to above the NIS 3.524/$ level. However, things subsequently calmed down and supply from exporters, looking to take advantage of the depreciation, supported a strengthening of the shekel."
He added, "The market is moving within a very limited range of NIS 3.48/$ and NIS 3.53/$. Breaking above NIS 3.53/$ could see movement towards the peak seen during last month's holidays at NIS 3.55/$."