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Shekel Stable After BoI Kept Rates Unchanged

ILS

Spot USD/ILS holds stable at 4.0616, oscillating within a tight range around that level. Bulls look for a resumption of gains past Oct 20 high of 4.0815 and towards Jul 26, 2012 high of 4.0980.

  • The Bank of Israel kept the base rate unchanged at 4.75% yesterday, consistent with market expectations and earlier hints pointing to the focus on FX stability. The central bank also outlined updated macroeconomic projections based on the data collected since the outbreak of the ongoing war in Gaza.
  • The focus is on the IDF's preparations for a ground offensive in Gaza. The Times of Israel suggested that the Biden administration is unsure if Israel is ready for the complicated operation, with specific military goals and optimal tactics yet to be defined.

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