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Shekel weakens sharply against US dollar at opening

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The shekel weakened sharply against the US greenback at the begin of buying and selling on the foreign exchange market these days. The shekel-dollar exchange charge is currently up 1.76% in comparison with the consultant charge set past Thursday, at 3.2736.

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At minimum two factors are triggering the shekel to weaken. Adhering to the determined stance on combating inflation taken by US Federal Reserve chairperson Jerome Powell, expectations have risen of a .5% hike in US curiosity prices in May possibly, and of a identical hike in each of the next conferences of the Federal Open up Current market Committee, in June and July. The expectation of steep curiosity fee rises in the US whilst costs in Israel increase a lot more gradually indicates a widening desire fee hole in between the dollar and the shekel, foremost to a mounting exchange fee.

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The other issue contributing to the weakening of the shekel this morning is the new falls in US stocks. The shekel-dollar exchange level is strongly correlated with the US stock market, through the hedging pursuits of Israel financial institutions exposed to that market. When shares slide in the US, the institutions have to get bucks and promote shekels to stability their forex positions.

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Published by Globes, Israel business enterprise news – en.globes.co.il – on April 25, 2022.

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© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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