The shekel-dollar exchange rate fell below the NIS 4.2/$ level, as it is down 2.7% to NIS 4.14/$. The shekel-euro exchange rate is down 0.26% to NIS 5.5332/€.
On Monday, the Bank of Israelannounced that it will leave its interest rate unchanged at 0.5%. The Bank said that while data continues to point to a further contraction in economic activity, other data points to what it called a moderation in the rate of decline.
The Bank of Israel also said, "The risks that the economy will slide into deflation have declined, and in the current circumstances the probability that inflation will return to within the target range by the end of the year has increased."
The shekel's move against the dollar, which points to a weaker dollar, is in line with the dollar's weakness against leading global currencies. US GDP fell a sharper than expected 6.1% in the first quarter. The Federal Reserve has also decided to keep Fed Funds at their historic low.
Representative foreign currency exchange rates have not been set since Monday, due to Israel's Independence Day holiday. On Monday, the representative shekel-dollar exchange rate was set at NIS 4.256/$, and the representative shekel-euro exchange rate was set at NIS 5.5477/€.
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2009
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