Bank Leumi: With hopes that uncertainty will subside, fundamental forces reminiscent of the current account surplus proceed to support the appreciation of the shekel.
The shekel is appreciating sharply today against the US dollar and the euro. In afternoon interbank trading, the shekel to US dollar exchange rate fell 0.82% to NIS 3.566/$, and the shekel to euro exchange rate fell 0.98% to NIS 3.767/€.
On Friday, the Bank of Israel set the representative shekel/dollar rate 0.222% lower at NIS 3.595/$ and the representative shekel/euro rate 0.301% higher at NIS 3.804/€.
Kobby Levi, head of market strategy at Bank Leumi, said: “The shekel continues to strengthen against the dollar and euro. Its strengthening began after the ceasefire agreement with Hezbollah, supported by increased sales of foreign currency by the local financial sector, while on the other hand, the volume of purchases appears to be around the current level. In our view, despite the recent improvement in sentiment, political developments in Syria increase uncertainty in the region and have the potential to vary sentiment in the long term as the yr approaches, and with hopes that uncertainty subsides, fundamental forces reminiscent of the current account surplus proceed to support the appreciation of the shekel. “
The ceasefire agreement between Israel and Lebanon has strengthened the shekel, which is at its strongest in over 4 months against the US dollar and at its strongest in 20 months against the euro.
Published by Globes, Israeli Business News – pl.globes.co.il – December 9, 2024
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Shekel Source: Shutterstock Vladirina 32
