08:35
Soar in the foreign exchange market this morning, after the sharp upheavals on Wall Street in the last few days and a positive trend in trading today’s contracts.
The dollar falls by about 2% against the shekel and trades around 3.51 shekels to the dollar and the euro weakens by 0.5% around 3.483 shekels.
Globally, the dollar weakened by about 0.3%-0.4% against the euro ($0.992 per euro) and the pound sterling ($1.136 per pound) and traded stably against the Japanese yen and the Chinese yuan.
Yossi Freiman, CEO of Freeco Risk Management, Financing and Investments, points out that “the positive trend in the capital markets around the world, alongside the Bank of Israel’s determination to dream of inflation and the interest rate hike on Monday, contribute to significant foreign exchange supplies. The sharp rise in the world’s stock markets, and the scope of exposure The limited holdings of the institutions means that sharp and significant movements in the global capital market are immediately reflected in the local arena. The institutions sell significant amounts of foreign exchange with the increase in the value of the stock portfolios, as an effect of hedging the exposure. Foreign exchange sales by Israeli exporters, and companies that have raised foreign exchange, lead to significant oversupply. When the companies require shekels for salary and tax payments.”
“The paucity of trading days and the exit to Gesher days in light of the upcoming holidays, contribute to the fact that significant foreign exchange supplies are flowing into the local currency market, during several short and few trading days,” adds Freiman.