The "Dawn" operation did not affect the shekel exchange rate:
the dollar falls to a 3-month low against the shekel - weakened by 0.8% to 3.30 shekels now, the euro is at an all-time low against the shekel - 3.375.
The main reason that led to the sharp appreciation of the Israeli currency is the increases in the stock markets in the world in the last month and a half.
In addition to this, the slow rate of interest rate increases in Europe and the worsening energy crisis recently caused a sharp weakening of the euro against the dollar - something that also affected the exchange rate against the shekel.
On Thursday, the euro broke the historic low level recorded in this currency pair in 2000 -3.41 shekels and since then it has been trading in constant decline against the shekel.
The low euro makes vacations in Europe cheaper for Israelis - from shopping to flight prices.
In the last month, the euro fell by more than 4% against the shekel, from NIS 3.52 to NIS 3.375 today.
"3.20 is already around the corner"
The manager of Bank Leumi's foreign securities transaction room, Roni Gitlin, explains in a conversation with "Israel Hayom" that "the strong correction in the stock market, which brought the TA 35 index to a level of almost 2000 points and the S&P500 index to the level of 4,140 after we had already At 3700, it is also expressed in dollars and shekels.
After a record high of 3.55 recorded just a few weeks ago, we are witnessing a 6 percent fall in the shekel dollar."
The American dollar, photo: AFP
According to him, "the story is still the correlation with the stock markets abroad.
The institutional bodies have significant holdings of the assets abroad, and when the stock markets rise, they hedge them by selling the dollar to the shekel. In addition, despite the announcements at the moment, the Israeli economy is growing nicely, led by exports, and all this strengthens the shekel."
Gitlin adds that "there is a disconnection from the dollar in the world, and the fact that the euro-dollar touched 1 did not affect the strengthening of the dollar against the shekel. We are witnessing new low records in the euro-shekel. It is likely that if the crisis in the stock market is over, the direction is for the continued strengthening of the shekel against the dollar And the euro. The rate of 3.20 is around the corner and below, and probably in the end only a crisis in the stock market or the Bank of Israel can stop the trend."
will raise the interest rate by 0.5%?
The weakening of the exchange rates of the dollar and the euro against the shekel should, at least in theory, reduce the cost of imports to Israel and thus slightly lower the inflationary pressures in Israel.
The Bank of Israel's upcoming decision on the interest rate will take place in less than two weeks, on August 22, and currently, the interest rate market predicts that the Governor will raise the interest rate by a sharp half percent.
However, it cannot be ruled out that the continued decline in foreign exchange rates together with the reduction in the price of fuel may cause the Bank of Israel to "downshift" and raise the interest rate by a quarter of a percent.
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