Shekel Weaker, TASE Stronger Amid Political Uncertainties

View of the Tel Aviv Stock Exchange, in the center of Tel Aviv, December 25, 2018. Photo by Adam Shuldman/Flash90 

The Israeli market reaction to the inconclusive elections was mixed on Wednesday.

The outcome seemed to weaken the shekel, which lost against the dollar and the euro. In late morning inter-bank trading, the shekel-dollar exchange rate was up 0.16 percent against the dollar at NIS 3.544/$ and up 0.36% against the euro at 3.918/€, according to Globes

The shekel slipped despite expectations that U.S. Federal Reserve will cut the dollar interest rate by 25 base points, thereby further narrowing the interest rate gap between the dollar and the shekel, after cutting U.S. interest rates in July.

By contrast, the Tel Aviv Stock Exchange rose despite the political uncertainty. The Tel Aviv 35 Index rose 0.49 percent to 1,616.59 points; the Tel Aviv 125 Index rose 0.45 percent to 1,522.94 points; but the BlueTech Global Index fell 0.10 percent to 377.34 points. The TelBond 20 corporate bond index rose 0.17 percent to 366.97 points. Trading turnover was NIS 1.00 billion.