Shekel Weakens Against Dollar After Fed Announcement


shekelThe US dollar is strengthening on world markets after the Federal Reserve announced the end of quantitative easing.

A day after the US Federal reserve announce the end of its quantitative easing program (QE3), the shekel has weakened against the US dollar this morning, and strengthened against the euro. The shekel-dollar exchange rate is up 0.53% in comparison with yesterday’s representative rate, at NIS 3.7738/$. This interrupts the trend of a correction in the shekel-dollar rate after the Bank of Israel announced no change to its interest rate on Monday. The shekel-euro rate is curently down 0.62%, at NIS 4.7523/€. On world markets, the dollar has strengthened against the other major currencies.

Speculation now turns to the question of when the Federal Reserve will start raising interest rates. The move is currently forecast for the second quarter of 2015, but of course all depends on the macro figures that will be published in the coming weeks and months, chiefly in the US itself, but also in the rest of the world. The Federal Reserve said in its announcement that interest rates could rise earlier if the US economy grows faster than currently forecast.


{ Israel}



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