The dollar continued to jump against the shekel today (Friday), and its representative rate was set at NIS 3.5260, an increase of 0.75% compared to yesterday.
This is the highest level of the US currency in more than two years.
Earlier in the day, the dollar hit 3.5470.
Since the beginning of the year, the shekel has weakened by about 13% against the dollar.
The strengthening of the dollar against the shekel is due to the strengthening of the dollar in the world and the declines in the stock markets that have continued since the beginning of the year.
When the stock markets fall, the foreign exchange exposure of the institutional bodies decreases and they hedge it by buying the dollars against the shekels.
According to Modi Shafrir, Chief Financial Markets Strategist at Bank Hapoalim: "The declines in global stock markets, leading to dollar purchases by institutional entities, combined with the strengthening of the world dollar (the DXY index) to close to its highest level in the last 20 years, are also leading today. The dollar is noticeable against the shekel. "
Shafrir added that "despite the weakening of the shekel since the beginning of the year, at the end of the last decade the Israeli shekel is still very prominent in relation to other currencies in the world - the strongest currency both against the dollar and the euro in the last 10 years."
In Europe, inflation data were published today, which recorded a sharper-than-expected rise: 8.6% in the past year, compared with 8.4% in June.
The data increase the estimate that the European Central Bank (ECB) will act more aggressively against inflation in the eurozone and raise the interest rate in July by 0.5% and not by 0.25% as announced during the previous month.
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