Bethel Finances: Shekel stable against dollar as inflation dips

www.bethelfinance.com

"The shekel was stable in inter-bank foreign currency trading today after the Central Bureau of Statistics reported yesterday evening that the Consumer Price Index (CPI) rose by just 0.1% in October. The shekel dollar exchange rate was down 0.14% at NIS 3.727/$, while the shekel euro exchange rate was down 0.02% at 5.046/€" said Mrs. Vanessa Bonan from Bethel Finance Ltd.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.732/$, up 0.24% on yesterday's rate, and set the shekel-euro representative exchange rate at NIS 5.047/€, down 0.65%.

The Central Bureau of Statistics also reported that house prices, which are not included in the CPI, fell by 0.2% in October - the first such monthly fall since January 2009.

Also yesterday Psagot Investment House Ltd. revised its growth estimate for 2012 down to below 3% with a pessimistic estimate of 2.5%. Psagot also sees unemployment rising from its current level of 5.6% to 6.8%.

However, Bank of Israel Governor Stanley Fischer stuck with his estimate of 3.2% growth in 2012, down from 4.7% growth this year.

In the international arena, lingering fears over the euro zone debt crisis have dragged the euro down to a seven-week low against the dollar at $1.34/€.