Shekel sharply stronger after attack on Iran

Poria Finance: The dollar continues to trade in the familiar range of NIS 3.55-3.85/$ but in the longer term the shekel should strengthen.

The shekel was sharply stronger today after Israel’s relatively restrained attack on Iran soothed market jitters about an escalation. The Bank of Israel set the representative shekel-dollar rate down 1.506% today from Friday, at NIS 3.728/$, and the representative shekel-euro rate was set 1.572% lower at NIS 4.033/€.

Poria Finance chairman Or Poria said earlier today, “The shekel-dollar rate is falling sharply this morning, apparently due to the easing of tensions between Israel and Iran and the renewal of negotiations for a hostage deal and a ceasefire. The dollar continues to trade in the familiar range of NIS 3.55-3.85/$, while in the longer term, the estimates remain unchanged and expect another significant depreciation of the dollar rate against the shekel, which will trade at lower levels (for the dollar).”

Ultra Finance CEO Yonatan Brand said, “Forex rates are reacting as expected to the latest political and economic developments. The shekel-dollar rate is trading around NIS 3.70/$ and it can be assumed that the traders are awaiting the results of the US elections. At the same time, the sharp depreciation of the euro and the pound over the last two weeks is due to the security tensions following the response to the attack in Iran. Along with some optimism that the current round is over, there are also concerns about the possible macroeconomic effects of damage to oil exports from the region.”

Published by Globes, Israel business news – en.globes.co.il – on October 28, 2024.