Israeli Shekel Resilient as Euro Slumps

Israel’s currency is getting stronger as the euro fell below the 4 shekel mark for the first time in 15 years.

By Israel Today Staff |

The euro is struggling because of increased terror in Europe, Brexit and the European Union’s decision to continue monetary expansion policies that keep interest rates low. The shekel, on the other hand, is strengthening and since the beginning of the year has risen 2.5 percent against the US dollar and 18 percent against the British pound.

A stable Israeli economy is contributing to the endurance of the shekel which has remained very strong, even during the global financial crisis in 2008 and 2009.

“While the dollar is breaking records against almost every currency, the shekel is retaining its strength,” said Leumi Capital Markets trading desk manager Ronny Gitlin. “Since 2008, the Bank of Israel has intervened to buy $7-9 billion in foreign currency each year. Nevertheless, the shekel is at a 15-year high against the basket of other currencies.”

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