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News Brief

  3/14/2008, Adar Bet 7, 5768

Shekel World's Strongest Currency against Dollar


The shekel has gained in the last few months against the dollar more than any other world currency, and the shekel-dollar rate reached an 11-year record of less than 3.40 shekels Thursday before ending the evening slightly above 3.40. The Bank of Israel intervened in trading for the first time in a decade and bought dollars, a total reverse of the history of the shekel, which for decades held a low status against the former almighty dollar.

The February consumer price index to be announced on Friday is expected to be less than zero, giving Bank of Israel Governor Prof. Stanley Fischer more leeway to lower interest rates without fearing a return to high inflation. A lower rate would make the shekel less attractive to foreign investors.