Israeli Shekel Advances Against Greenback After Rate Decision

The Israeli shekel traded higher against the US dollar after the announcement of Bank of Israel's interest rate decision during New York mid-day trading on Monday. The Bank of Israel left its benchmark interest rate unchanged for a second consecutive month today, as the inflation rate recorded in April moved back within the bank's target range.

During the bank's monetary policy council meeting, central bank governor Stanley Fischer decided to keep the interest rate unchanged at 1.5%. Fischer has raised rates by 1 percentage point since last August.

The central bank said that the decision to keep rates unchanged is consistent with the gradual process of returning the interest rate to a more "normal" level.

Additionally, the Bank of Israel said the decision is intended to position inflation firmly within the target range and to contribute to the further recovery of economic activity while supporting financial stability.

The shekel climbed to 3.8000 versus the greenback by about 12:20 pm ET, which may be compared to last week's closing value of 3.8350. Presently, the pair is worth 3.8150.