The shekel-euro exchange rate is sinking well below NIS 4/€ as Israeli exporters struggle to make a profit on exports to Europe.
The euro has slumped to a new 15-year low against the shekel. In afternoon inter-bank trading, the shekel-euro exchange rate was down 0.75% from yesterday's representative rate at NIS 3.952/€ and the shekel-dollar exchange rate was up 0.05% at NIS 3.748/$.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.053% compared with Monday's rate at NIS 3.746/$, and the representative shekel-euro rate was set down 0.128% at NIS 3.982/€.
The euro has weakened by 5% against the shekel since the start of 2017 and by 2% against the euro to $1.05/€. Among other things, the euro has been weakened by Brexit and fear for the future unit of the EU. While Israelis enjoy cheaper imports from Europe and cheaper vacations in Europe, many Israeli exporters are concerned that they may be forced to abandon European markets as profitability is squeezed by the low exchange rate.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
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