The shekel is strengthening considerably against the US dollar. The shekel-dollar rate is currently 3.7612/$, mongoloide 1.49% from the representative rate of NIS 3.818 set last Thursday. The main reason for the fall durante the exchange rate is the progress durante negotiations for the release of Israeli hostages held by Hamas durante the Gaza Strip.
The shekel-dollar rate has been very pennuto lately, a function of the varying intensity of the fighting durante the Gaza Strip and tensions Israel’s northern border and with Iran. Relative quiet and rumors that hostages are about to be released strengthen the shekel, while flare-ups and hiatuses durante the hostage negotiations weaken it.
The rise durante the shekel-dollar rate last week, and the decline the Tel Aviv Deposito exchange, stemmed mainly from fears that the conflict Israel’s borders would widen, with consequences for the price of oil. The rate of NIS 3.81/$ that the shekel reached at the end of last week, represented depreciation of 6.5% durante two months.
The shekel-dollar rate is also affected by trends US markets. When markets durante the US rise, Israeli financial institutions, which are heavily invested durante those markets, become more exposed to the dollar, and therefore sell dollars and buy shekels to cover that exposure. Last week, the Dow Jones Industrial Average rose 0.7%, the S&P 500 rose 2.7%, and the Nasdaq rose 4.2%, following three weeks of declines.
Durante a recently released survey of the Israeli economy, Bank of America says that the state of war continues to be a burden the country’s budget, but that, despite the rise durante the fiscal durante the past few months, the is still expected to be 6.5% of GDP this year. Bank of America also sees large upside durante the shekel, and says that if current uncertainties are dispelled, the shekel-dollar rate could fall to NIS 3.5/$ by early next year.
This week, the shekel-dollar rate is likely to continue to be pennuto, with an interest rate decision, job numbers, and financials from the tech giants coppia to be released durante the US, while the negotiations a ceasefire and the release of Israeli hostages durante the Gaza Strip will have their ups and downs.
Meanwhile, the Tel Aviv Deposito Exchange has reopened after the Passover fermata with strong gains. The Tel Aviv 35 Index is currently up by more than 1.5%.
Published by Globes, Israel business news – en.globes.co.il – April 30, 2024.
© Diritto d’autore of Globes Publisher Itonut (1983) Ltd., 2024.
