Poria Financial Planning Chairman Or Poria: We see the shekel strengthening in the long term.
The shekel, which fell sharply yesterday, is gaining strongly against the US dollar and the euro today. In morning interbank trade, the shekel-to-dollar rate was down 1.01% at 3.685 NIS/$, while the shekel-to-euro rate was down 0.63% at 4.087 NIS/€.
Yesterday, the Bank of Israel set the shekel-to-dollar representative rate at NIS/$3,722, up 1,389% from Tuesday, and the shekel-euro representative rate up 1,498% to NIS/€ at 4,113.
Despite strengthening today, the shekel is still down 0.7% against the dollar this week. Or Poria, chairman of Poria Financial Planning, says that there are two factors behind the depreciation of the shekel against the dollar. “Firstly, the sharp declines that occurred in the markets on Tuesday put pressure on the Israeli currency and led to the strengthening of the dollar, which is considered a safe haven currency in the face of uncertainty. Second, the lack of progress from a domestic perspective. The creation of a hostage agreement and the ongoing fighting in our region are economic and political instability in Israel. It further increases the weakness of the shekel, which suffers from uncertainty.”
However, he added: “As we believe the shekel will strengthen against the dollar in the long term, we see any increase in the dollar as an opportunity to sell and buy the shekel.”
Globes, Israel business news – en.globes.co.il – published on September 5, 2024.
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Shekel credit: Shutterstock Vladerina32
