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On October 16, 1996, the representative exchange rate of the dollar was set at NIS 3,203, and the value of the currency apparently made its way there. Also in local trade – the euro weakened by 0.6% and its representative rate was set at NIS 3,928. The weakening pound that is booming today, jumps after the representative exchange rate against the world’s leading shekel and currencies (see update on the subject below).
The dollar fell below a 12-year low yesterday, from July 2008, below NIS 3.23 – and today it also looks down from the last low of 1996, when it stood at NIS 3.227 in November of that year. So here’s what to expect down the slope – the following lows that the currency may cross:
On October 16, 1996, the representative exchange rate of the dollar was set at NIS 3,203.
On October 15, 1996, for NIS 3,197.
On April 1, 1996, for NIS 3,107.
On March 20, 1996 for NIS 3.08.
On 13.11.95 for NIS 3,009.
On October 19, 1995, the representative rate was set below NIS 3, at NIS 2,991.
Following the negative sentiment in the dollar, market estimates are that the Bank of Israel acquired more than $ 300 million yesterday in order to curb the erosion in the profitability of exporting companies. Indeed, after touching a 24-year low, currency traders told of the Bank of Israel’s ‘disappearing hand’ that operates in the currency market and buys dollars and jumps the dollar from the level of 3.2290 to 3.2420 shekels.
According to Yossi Freiman, CEO of Frico Risk Management Financing and Investments: “A particularly significant intervention is required in order to prevent the decline towards NIS 3.20 this year! “Attention remained at the level of NIS 3.26, and stabilization above will serve as a marker for a pro-dollar correction of the short term, while the medium and long term remain pro – shekel.”
Freiman added that the purchase of dollars is relatively small for sale: “If the effect of the activities of financial and real investors is not enough, then Israeli exports, which pay wages and taxes in shekels, are also required to sell foreign currency. On the other hand, the market that is subject to social isolation, or closure, is unable to meet demand for foreign currency at a volume approaching supply. “
In the global market, not surprisingly, the dollar continues its negative trend during the corona period: the euro is up 0.3% to $ 1.219, the pound is up 1.2% to $ 1.352. Even against the euro, the pound is soaring (update below). Against the Chinese yuan and the Japanese yen, the US currency is recording slight declines. Against the basket of 6 major currencies, the dollar is down 0.2%, but remains above 90 points.
Stephen Monier, Lombard Odeier’s chief investment officer, commented on the $ 892 billion bailout package approved by the US Congress: “The forecast is for a 4.6% drop in real GDP. We expect the US economy to recover and return to pre-crisis GDP levels during the second half of 2021 with a 4.6% increase in GDP.”
According to Munia, “The approved package addresses most of the needs of the US economy. The change in the Federal Reserve’s policy to an average inflation target makes raising interest rates even less likely. “.
The pound has soared in the last hour: the MarketWatch website reported that the EU and the UK are closer than ever to a new trade agreement to be reached, before the Brexit at the end of the year (the deadline expires next Friday).