Estimates regarding a ceasefire from a fence in exchange for the return of the abductees, together with the weakening of the dollar in the world, caused the dollar to drop against the shekel this morning (Wednesday).
The dollar is trading at this time with a decrease of about 1.5% for NIS 3.717, the euro decreases by a similar rate to about NIS 4.04.
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We note that only yesterday the dollar traded at levels above NIS 3.77.
At the same time, increases of over 1% are recorded in the stock exchange in Tel Aviv.
Ronan Menachem, Chief Markets Economist at Mizrachi Tefahot, says in a conversation with "Israel Hayom" that "the strengthening of the shekel is due both to the weakening of the dollar globally, and to a local background. It is possible that the reports that Hamas is apparently open to discussing the liberation of women and children are among the triggers for this. H is definitely thirsty for good news on the political level.
There are also estimates that the 2024 budget "takes a step" towards the governor's recommendations, which are very important in this context."
Menachem adds: "It is important to note that both the previous devaluation of the shekel and its current strengthening point to nervousness and volatility - certainly at such sharp rates - but it is not possible to learn from them about a clear direction with a view to the future. The foreign exchange market reacts strongly to news developments, in any direction, and so It will continue for the foreseeable future."
The dollar tends to weaken (illustration), photo: GettyImages
As for the weakening of the dollar in the world, Menachem explained to us that "the markets are waiting for the interest rate announcement in Europe, which will be delivered tomorrow. In the Eurozone, more hawks have been heard about interest rates than in the US, so the dollar tends to weaken."
"To this must be added the continued increases on Wall Street that are indicated by the contracts. As we know, the shekel usually has a positive relationship with increases in the stock markets in the United States," he emphasizes.
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