The shekel strengthened against the dollar and euro in early inter-bank trading today. By the afternoon, the shekel-dollar exchange rate was down 1.13% to NIS 3.492/$ and the shekel-euro exchange rate was down 0.83% to NIS 4.98/€.
"I don’t see the curve on the dollar reaching NIS 3.60/$ or a maximum of NIS 3.65/$ in the coming months, and forget about a higher exchange rate," said Excellence Nessuah chief economist Shlomo Maoz at the "Globes"-BDO Ziv Haft Finance and Capital Market conference yesterday.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.529/$, up 0.26% on the day before, and set the shekel-euro representative exchange rate at NIS 5.022/€, up 0.38%.
In international markets, the dollar is traded at $1.427/€, and it strengthened to ¥81.64/$ against the Japanese yen.
Maoz added that Governor of the Bank of Israel Prof. Stanley Fischer's decision to raise the interest rate by 50 basis points two months ago was "rash". Maoz expects inflation expectations to ease, because of moderately rising salaries, the jump in Israeli productivity, and falling prices for commodities. He said, "I see the interest rate at 4.25% by the end of the year. In 12 months, I see the US growing and its interest rate rising."
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