Shekel hits 18-month high vs. euro
As European currency continues to weaken globally on heels of Greece's debt crisis, Israel's shekel rises 0.8%, fixed at 4.8118 per euro – its strongest level since November 3, 2008
The shekel was fixed at 4.8118 per euro – its strongest level since November 3, 2008 – compared with 4.8503 on Wednesday. It has gained steadily from a high of 5.05 euros on April 18.
"There's nothing local. The euro is going down against all currencies," said a dealer at Bank Leumi. "We're acting with the rest of the world."
In late trading, the euro gained further to 4.8 shekels.
The move down for the euro poses a dilemma for the Bank of Israel, which last month bought large amounts of foreign currency partly to keep the shekel from appreciating against the euro.
Dealers noted the Bank of Israel bought small amounts of forex on Wednesday.
The central bank, which bought more than 2.5 billion shekels of forex in April, has also sought to prevent the shekel from strengthening beyond 3.7 per dollar
The shekel's rate was set at 3.7720 per dollar – its weakest level since March 4 and down 0.6% from Wednesday. It had weakened to near 3.8 in intraday trading after peaking at 3.682 on April 12. It was at 3.78 per dollar in late trading.
"We saw offshore banks buying throughout the day," the dealer said.
The euro reached a 14-month low of $1.272 as fears have grown that Greece's woes may spread to other euro zone states.
Investors have flocked to the dollar as a safe-haven as it was not clear Greece would accept terms for a European Union-International Monetary Fund rescue package.
