The news that Stanley Fischer is staying in Israel boosted the shekel against the dollar and euro.
The shekel strengthened against the dollar and the euro in inter-bank trading today, after the IMF disqualified Governor of the Bank of Israel Prof. Stanley Fischer from running for the post of director general because of his age. The shekel-dollar exchange rate fell 1.11% to NIS 3.96/$ and the shekel-euro exchange rate fell 0.56% to NIS 4.902/€.
Fischer's announcement on Saturday night caused the shekel to weaken against leading currencies, on fears that his departure from the Bank of Israel could adversely affect the Israeli economy. Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.434/$, 1.21% above Friday's rate, and set the shekel-euro representative exchange rate at NIS 4.93/€, up 0.33%.
Capital market analysts predict that the Consumer Price Index (CPI) for May will rise by 0.5%. The Central Bureau of Statistics will announce the May CPI tomorrow at 6:30 pm. The analysts do not expect Fischer to raise the interest rate for July, after raising the rate last month to 3.25%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2011
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