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December 20, 2014 / 28 Kislev, 5775
 
At a Glance

Posts Tagged ‘shekel’

Shekel Dollar Rates Breaks Year High at 3.64

Tuesday, September 16th, 2014

The shekel-dollar rate continued its non-stop climb Monday and reached beyond 3.64 shekels to the dollar but is near a short-term resistance level of 3.66

The rate two months ago was 3.40, and analysts were predicting a further drop, but The Jewish Press reported here before the recent rise that the situation of everyone being of the same opinion was a sure sign that a reversal to the upside was in sight.

However, our previous report saw resistance around 3.62, a level that easily was broke but still is only 2 cents from the next level of 3.66

The dollar has risen against almost all foreign currencies this summer after years of being in the doldrums. The Federal Reserve Bank has given clear signals that the  near-zero prime interest rate will rise next year, which will give investors a higher return for putting dollars in the bank.

The shekel had been strong, translated into a low shekel-dollar rate, for several years until this summer. The Israeli currency was strengthened in part by the prospect of Israel becoming an exporter of natural gas, but a slowdown in the economy, hastened by the war in Gaza, regional turmoil, and the tough government choice of having to raise taxes or the debt ceiling have combined with the strong dollar to send the shekel-dollar rate north.

This is good news for anyone with money in shekels or who gets paid in dollars because the conversion rate back into shekels is becoming higher each day.

That is equally true for Israeli-based international companies, whose earnings have taken a hit in recent years because of a decline in the shekel-dollar rate.

A cheaper shekel helps increase exports and tourism because more dollars buy more shekels.

On the downside, the higher shekel-dollar rate reflects pessimism over the local economy, which until last year was one of the strongest and most stable in the world, surviving quite well even the global bust in 2008.

“The economy is slowing down sharply, and when you combine this with the fact that Israel is part of the global picture, it’s likely that the shekel will continue to weaken,” Robert Carmeli, overseas funds manager at Migdal Capital Markets to told Globes business newspaper.

He and others are predicting that the shekel-dollar rate will approach 3.80 by the end of the year.

Bank of Israel Introduces New NIS 50 Note

Wednesday, September 10th, 2014

The Bank of Israel has introduced a new fifty shekel note bearing the likeness of Shaul Tchernikovsky, a Russian-born Hebrew poet identified with nature poetry.

“It is unique in both its design and its security technology, which is among the most advanced in the world,” noted BOI Governor Dr. Karnit Flug.

The note was introduced at a joint news conference with Prime Minister Binyamin Netanyahu Wednesday morning.

“In order for this note to retain its value, we must guard both security and the economy,” Netanyahu said. “I very much appreciate your seriousness and professionalism and that of the Bank of Israel staff, in maintaining the stability of the Israeli economy. This is one of our two missions.

“We must increase the security budget due to Operation Protective Edge, and guard the economy, and these items meet in the deficit which we can control and which not topple us,” Netanyahu went on. “This will be our policy and thus we will act, together.”

Shekel-Dollar Rate Soars to 3.60 for First Time in a Year

Friday, September 5th, 2014

The shekel-dollar rate continued its sudden rise Friday and was quoted at more than 3.605 shekels to the dollar for the first time a year.

The rate had dropped to as low as 3.40 this summer. The Jewish Press noted last year that the rate was likely to go down to at least 3.40 if not 3.30 because of the stable economy and Israel’s new era of an energy exporter of natural gas.

A slowdown in growth, the war in Gaza and the increasingly unstable Middle East set a floor of 3.40 for the rate. One sure sign that the bottom had been reached was almost universal agreement among analysts that the rate hit a resistance area of 3.57 earlier this week and that the rate would turn down.

The Theory of Contrary Opinion again was borne out with the non-stop rise, which so far has capped at 3.60.

Analysts at Bank Igud said that support for a weakening shekel is coming from “the slowdown growth, negative economic influences from the Protective Edge counter terror campaign, and from the need to establish social-economic priorities.”

Bank Leumi also cast doubts that the shekel will weaken.

As everyone jumps into the same camp again, the rise in the shekel-dollar rate may have finished its rise for the time being.

Israel to Sell $500 Million of Natural Gas to Jordan

Wednesday, February 19th, 2014

The Nobel Energy consortium developing Israel’s offshore “Tamar” natural gas fields has signed a half a billion dollar deal to export gas over the next 15 years to Jordan’s Arab Potash Co. and Jordan Bromine Co.

The exports could grow to $30 billion over a longer period of time.

Nobel and its Israeli partners Delek, Isramco and Alon Natural Gas. Will build a pipeline from the Dead Sea Works to the Jordanian side of the Dead Sea.

U.S. Deputy Assistant Secretary for Energy Diplomacy at the State Department Amos Hochstein has held more than a dozen meetings with Jordanian and Israeli businessmen and political leaders over the past 18 months to help negotiate the Jordan’s King Abdullah II and Prime Minister Binyamin Netanyahu were involved.

Jordan is increasingly dependent on Israel, which already supplies the kingdom with water, and the significance of Israel’s recent oil and gas discoveries has been under-exaggerated, both economically and financially.

The consortium operating the Tamar gas field previously have signed a 20-year contract to sell $1.2 billion worth of natural gas to the Palestinian Authority.

The purchases by Jordan and the Palestinian Authority come at the expense of Egypt, which has been a totally unreliable supplier thanks to terrorists who frequently blow up the pipeline that brings gas from El Arish to Israel and Jordan.

The deal with Jordan “will pave the way for additional export projects which could enhance regional cooperation as well as provide additional supply to the domestic market and enhanced security of supply through development of additional reservoirs and infrastructure,” said Noble Energy VP Eastern Mediterranean Lawson Freeman.

The new natural gas industry in Israel is creating thousands of jobs for laborers and engineers and also has helped turned the shekel into one of the world’s strongest currencies against the dollar.

Politically, Israel’s energy sources and water resources , thanks to desalinization plants, are creating conditions that will make the Palestinian Authority and Jordan a lot less belligerent while leaving Egypt to wallow in its own economic and political anarchy that was hastened by the Arab Spring revolutions.

Sinking Shekel-Dollar Rate Good News for Israelis Visiting the US

Wednesday, January 1st, 2014

How low can you get? The shekel-dollar rate sank to a 28-month low Tuesday, and a dollar now is worth only a tad more than 3.46 shekels, compared with 3.50 shekels  a week ago and 3.75 a year ago. A shekel now is worth 29 cents, compared with 25 cents a year ago.

That means that American in Israel wanting to visit family in the United States can buy $100 with only 346 shekels. It also is bad news for American visiting Israel or earning dollars in Israel from abroad, who receive fewer shekels for a dollar.

Tuesday’s trading sent the rate to its lowest level since the spring in 2011, and a foreign exchange specialist told Globes business newspaper, “There is no doubt that the negative pressure on the two currencies remains large and there is a risk of breaking significantly lower. The dollar is at high risk worldwide due to the positive sentiment in capital markets in recent weeks and record levels of share indices.

“If there is indeed a continued weakness of the dollar at the start of 2014, the Bank of Israel must take aggressive action to prevent a collapse. From a technical point of view the shekel-dollar exchange rate is exposed to falling to very dangerous levels such as NIS 3.42/$ and NIS 3.38/$.

The shekel dollar rate has not been this low since August 2011, when it reach 3.4 shekels to the dollar. The only other time it was lower was in 2008, when the rate fell  to 3.26.

Strong Shekel, Weak Oil Drive Down Price at the Pump

Sunday, September 29th, 2013

Israeli motorists will enjoy a relatively large drop in the price of gasoline in October following a sharp drop in the price of crude oil and a stronger shekel the past month.

The end-of-the month adjustment Monday night is expected to knock approximately 45 agorot (13 cents) off every liter of regular unleaded fuel.

The drop more than wipes out the 25 agorot per liter increase at the beginning of September.

Easing of Fears of Attack in Syria Sinks Shekel-Dollar Rate

Wednesday, September 11th, 2013

The shekel-dollar rate sank to a two-year low Wednesday, reaching to as low as under 3.56 shekels to the dollar, after President Barack Obama called off a Senate vote on giving him permission to attack Syria. One shekel now is worth slightly more than 28 cents, good news for Israelis wanting dollars but terrible for exporters and Americans in Israel whose savings or wages are in dollars.

Last week, when it seemed certain that the United States would attack Syria, the rate was more than 3.66 shekels to the dollar.

Analysts expect the Bank of Israel to buy more dollars to jack up the rate if it falls much lower, but similar measures in the past have proven to have little long-term effect. The rate may move back up because of renewed strength in the American dollar worldwide.

However, the shekel  is expected to grow stronger  in the long term because of an improving economy, reduction of the deficit and the continuing development of the new offshore energy industry that is turning Israel into an energy exporter.

Printed from: http://www.jewishpress.com/news/breaking-news/easing-of-fears-of-attack-in-syria-sinks-shekel-dollar-rate/2013/09/11/

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