The shekel continued to strengthen against the dollar Tuesday, but was flat against the euro in morning inter-bank trading. The shekel-dollar exchange rate fell 0.27% to NIS 3.563/$, but the shekel-euro exchange rate edged up 0.01% to NIS 5.144/€.
Lembex Financial Group believes that, even if the Bank of Israel slows its pace of interest rate hikes, the shekel will continue to attract foreign investors, and an exchange rate of NIS 3.38/$ is therefore still possible. On the other hand, "a continuation of the global slowdown and an interest rate cut in October by the Bank of Israel would cause the shekel-dollar exchange rate to make a U-turn and send it higher," says Lembex.
In international markets, the dollar is stable against the euro, trading at $1.44/€.