The shekel is weakening today against the dollar and against the euro. In afternoon inter-bank trading the shekel-dollar exchange rate is up 0.90% at NIS 3.476/$ and up 0.32% against the euro at NIS 4.048/€, Trend reports with reference to Globes.
Yesterday, the Bank of Israel set the shekel 0.116% higher from Tuesday at NIS 3.445 /$, and the representative shekel-euro rate was set 0.257% down at NIS 4.035/€.
The Israeli currency continues to fall as new Covid-19 infections rise, causing the government to tighten the lockdown and close down the entire work from offices in the entire business and public sectors except for essential industries. The OECD sees Israel's economy shrinking 6% this year and only growing 2.9% in 2021.
Having reached its strongest against the dollar since July 2008 at the end of August, when the representative rate was set at 3.353/$, the shekel has since weakened due to the rise in Covid-19 infections. The shekel is trading at levels not since for three months against the dollar, although exporters will be pleased that the Israeli currency has lost some of its strength.