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December 9, 2016 / 9 Kislev, 5777

Posts Tagged ‘shekel’

Save Money on Coffee

Friday, July 29th, 2016

Not just in Israel…

A coffee shop own put up a sign for coffee.

“Coffee” – 9 Shekel

“Coffee, please” – 8 Shekel

“Good Morning, may I have a coffee please” – 7 Shekel

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Shekel-Dollar Rate Sinks after Interest Rate Left Unchanged

Thursday, September 24th, 2015

The shekel-dollar rate plummeted to 3.92 Thursday afternoon after the Bank of Israel announced it is leaving the interest rate unchanged next month.

Before the announcement, the local currency traded above 3.95 shekels to the dollar on speculation that Bank would cut the rate which already is at a historic low of 0.1 percent.

The last time the shekel traded above the 3.94 level was in April, when it briefly crossed the 4.00 shekel level.

Jewish Press News Briefs

Shekel-Dollar Rate Hits Three-Year High at 4.01

Friday, March 6th, 2015

The dollar was trading at 4.01 shekels shortly before noon Friday, the highest rate since 2012.

The Bank of Israel reported Friday that it bought $1 billion worth of dollars last month in its currency war to make the shekel cheap and increase exports.

The shekel-rate sneaked across the 4.00 level last week but quickly receded.

The recent buying binge of dollars by the Bank of Israel has increased Israel’s currency reserves to a whopping $85 billion.

The shekel-dollar rate could rise as far as 4.10 or 4.20, according to some analysts, but a currency bubble is developing to the point that if and when the Americans stock market starts to tumble, investors in Israel will cash in and bring home shekels. The result would be a dive in the shekel-dollar rate, with the Bank of Israel being left with a huge pile of cheaper dollars that it can’t sell without driving the rate down even further.

Tzvi Ben-Gedalyahu

Shekel-Dollar Rates Tops 3.91

Monday, December 1st, 2014

The shekel-dollar rate hit a new two-year Monday morning, rising above 3.91 shekels to the dollar.

In July, the rate was around 3.40 with projections for its going even lower.

FXCM Israel, quoted by Globes, explained Monday, “The shekel-dollar exchange rate is not stopping and reaches new peaks almost daily….

“It seems that sentiment towards the shekel is at an unprecedented low, both because of the deteriorating security situation and because of the signs that the coalition is breaking up and the election atmosphere that is taking over the political arena. All this arouses concern on the market.

“The local market seems dominated by buyers only: on the one hand, those long on the dollar are not rushing to take profits, despite the price levels, while in current conditions no-one dares buy the shekel, even when there are technical opportunities for doing so. We are thus witness to a completely one-sided market.”

It concludes that in the long term, “There is no escaping the view that this trend will continue, both because of the gap in economic growth between the US and Israel, and because of the fact that the U.S. Federal Reserve is expected to start toughening its interest rate policy, whereas the Bank of Israel, in current conditions, is expected to leave its interest rate at virtual zero for a prolonged period.

However, the Swiss USB bank wrote last week that while it sees the rate rising to 4 shekels to the dollar by mid-2015,,” Israel’s strong balance of payments should stem the depreciation in the medium term.”

Financial advisers have a habit of predicting the future based on the past and are not very good at calling a change indirection.

If the Israeli government coalition holds and early elections are not called, that could help brake the one-way trip for the currency.

Tzvi Ben-Gedalyahu

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.

Tzvi Ben-Gedalyahu

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.”

Hana Levi Julian

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.

Tzvi Ben-Gedalyahu

Printed from: http://www.jewishpress.com/news/breaking-news/shekel-dollar-rate-soars-to-3-60-for-first-time-in-a-year/2014/09/05/

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