Shekel extends gains over dollar

(MENAFN- Trend News Agency ) The shekel is strengthening today against the dollar and stable against the euro. In afternoon inter-bank trading, the shekel-dollar exchange rate is down 0.64% against the dollar at NIS 3.561/$ and down 0.09% against the euro at 4.206/€, Globes reports.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.139% at NIS 3.584/$ from Friday's rate and set the shekel-euro rate down 0.724% at 4.210/€.

The dollar has slipped on international forex markets after reaching a five-month high against the world's major currencies. But even at a five month high against the world's other major currencies, the dollar was unable to keep the shekel-dollar rate above NIS 3.60/$. The shekel has been boosted by a calming of the security situation in recent days and macroeconomic data showing that economic growth has been above 4% for the past three quarters.

In addition, the 0.4% Consumer Price Index rise in April, published last week, indicates that inflation is moving towards the government's 1%-3% target range, which should allow the Bank of Israel to raise interest rates towards the end of the year and close the interest rate gap between the shekel and the dollar.

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