News Column

BRIEF: Treasury hedging halts shekel strengthening

June 25, 2014

Globes, Tel Aviv, Israel

June 25--The shekel was weakening this morning against the dollar and euro after appreciating sharply yesterday against the world's major currencies. In morning inter-bank trading the shekel is up 0.19% compared with yesterday's representative rate, at NIS 3.4395/$, and the shekel-euro rate is up 0.09%, at NIS 4.681/euro.

In the foreign currency market yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.433/$, down 0.58% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.677/euro, down 0.36%.

The sharp depreciation yesterday followed the Bank of Israel Monetary Committee decision to keep the bank's interest rate at 0.75%.

But last night the Ministry of Finance Accountant General's General Comptroller's Division made two shekel-dollar hedging deals worth $150 million on Israel's foreign currency debt.

The ministry of Finance said that the two deals were part of hedging policy to reduce exposure to foreign currency exchange rate fluctuations. It added that market conditions and the shekel-dollar exchange rate supported the implementation of hedging deals as part of the Accountant General's annual work program.


(c)2014 the Globes (Tel Aviv, Israel)

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Source: Globes (Tel Aviv)

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