Israeli shekel at one-year low against dollar
There have been significant changes to Israeli monetary policy recently, including the addition of the Chinese yuan to the country’s reserves.
Israel’s currency is currently at its weakest position in a year against the US dollar.
The new Israeli shekel’s exchange rate was 3.31 to $1 yesterday. It was the weakest point since the start of April 2021, when it traded at 3.34 shekels to the dollar, according to the currency converter Xe.com.
There are a few reasons the shekel is currently weak relative to the dollar. The Israeli business news outlet Globes reported yesterday that the development is “reflecting the strength of the dollar on world markets.” Globes also stated that Israel is anticipating the US Federal Reserve to raise interest rates in the near future.
The Federal Reserve’s policy actions tend to have a major effect on fiscal developments around the world. Some Gulf states raised bank rates in response to the Fed’s interest rate hike last month. The Bank of Israel also raised its interest rate earlier this month for the first time since 2018 to counter inflation.
