The euro weakened by 0.4% to 4.246 shekels on Monday. Analysts' forecasts: The Bank of Israel is not expected to lower its interest rate. The CPI fell by 0.7% in February
The shekel-dollar rate rose by 0.4% early on Monday from Friday's representative rate to 4.0302 shekels to the dollar. The shekel-euro rate is down by the same amount, at 4.24 shekels to the European currency, financial daily Globes reported.
The euro's plight is so severe that US investment bank Goldman Sachs forecasts that the dollar-euro rate will reach parity within the next six months, and will decline further to $0.80 to the euro by the end of 2017, which would be one year after the European Central Bank is seen ending its recently commenced 60 billion euro a month quantitative easing program.
Meanwhile, the US Federal Reserve is due to announce its interest rate decision on Wednesday, coming just days after better than forecast US job figures for February.
Economists believe an interest rate rise in the US can be expected by the Fall.
And in Israel, Tamir Fishman Mutual Funds CEO David Katash said that the drop in the CPI in February reported on Monday vindicates the Bank of Israel's decision last month to cut its interest rate to 0.1%.
