What are the forces influencing the strengthening of the dollar?
The shekel-dollar exchange rate has experienced dramatic fluctuations, influenced by interest rate gaps, uncertainty, and dramatic changes in hedging by institutional investors. What should importers and exporters expect? Data of the week - now also…
Assessment
The dollar's strength against the shekel is being driven by three concrete forces: interest rate gaps, uncertainty, and dramatic shifts in how institutional investors hedge their positions. Importers and exporters face real financial exposure from these currency swings. The key question is whether these forces will persist or reverse, which determines whether businesses should lock in rates now or wait.