Dollar dips below NIS 4

For first time since January 2009, dollar exchange rate falls below four shekels

The dollar exchange rate continued its downward spiral Friday, weakening by nearly 1.5%, to a level of NIS 3.96. After falling by 1.8% Thursday, the dollar completed a 3.3% drop, dipping below NIS 4.00 for the first time since January 2009.

 

Meanwhile, the euro exchange rate dropped Friday by 0.155%, to a level of NIS 5.5222.

 

Bank Leumi economists estimated that the weakening of the dollar resulted, among other factors, from reports that Bank of Israel is seeking an exit strategy from the policy of daily foreign currency purchases it has adopted a while ago.

 

"The reports drew a wave of sales of the dollar," one analyst said. A Bank of Israel statement that denied the reports did not stop the strengthening of the shekel.

 

However, Bank Leumi's economists estimated that despite a possible short-term decline in the dollar exchange rate, "in the longer term the American economy's recovery alongside the changes stemming from the lessons of the crisis will boost the dollar."