Israeli shekel rose as monetary policy remains unchanged
The Israeli shekel rose against the US dollar on November 23, 2015. The central bank of Israel kept the interest rates unchanged at 0.1% for the ninth month. The economy suffered from the global slowdown. It has been showing signs of a rebound. This prevented the central bank from cutting the rates from these record low levels. Last week, the first estimate for the GDP (gross domestic product) growth in the third quarter released at 2.5% on an annualized basis. It was above the flat 0.2% growth in the previous quarter. The monetary policy panel, led by Governor Karnit Flug, noted that the policy will remain accommodative. It’s watching the strong speculations of a rate hike by the US Federal Reserve in December. The Israeli shekel hasn’t followed the depreciation trajectory by other emerging market currencies. This impacted the country’s export revenue.
Unemployment rate rose in October
The unemployment rate rose by 5.3% in October compared to 5.1% in the previous month. The number of employed people fell. Last week, industrial production fell by 19.3% on an annual basis in September compared to 5.0% growth in the previous month. On a monthly basis, industrial production fell by 4.3% in September compared to a 2.2% rise in August.
Impact on the market
The iShares MSCI Israel Capped ETF (EIS) fell after the Bank of Israel kept the rates unchanged. It was trading in a negative trajectory at 0.88% on November 23, 2015.
Israeli ADRs (American depositary receipts) were also trading on a mixed note. Technology companies NICE-Systems (NICE) and CheckPoint Software Technologies (CHKP) fell by 1.2% and 0.66%, respectively. On the other hand, capital goods maker Elbit Systems (ESLT) rose by 1.2%, while Taro Pharmaceutical Industries (TARO) ended lower by 0.66%.