Bank of Israel intervened in the foreign exchange market and purchased hundreds of millions of dollars

Following the appreciation of the shekel, the Bank of Israel intervened in the foreign exchange market and purchased hundreds of millions of dollars. Even after the acquisitions, the dollar continued to weaken - losing 0.2%, after a deeper decline yesterday morning. About 6% against the shekel.
At the same time, the euro lost 0.25% and traded at NIS 3.95. Since the beginning of the year, there has been a sharp appreciation in the shekel - and it is now at its peak. The value of the currency basket - which includes Israel's major trading partnerships - eroded by about 3.5% against the shekel this year.
It is estimated that part of the strengthening of the shekel stems from the activities of institutional entities - foreign and local. Since the beginning of November, the Tel Aviv Stock Exchange has soared by 10%, and today (Thursday) the indices are rising another 1.5%. Tel Aviv is currently closing pricing gaps with the world stock exchanges - after in recent months it showed poor performance, following the strong eruption of the corona plague. Now that control of the epidemic has been achieved in Israel, and new closures are being implemented in Europe, there is a shift of funds to the local market.
The strengthening of the shekel is also explained by the sale of dollars by high-tech companies. High-tech companies usually sell dollars at the end of the month - in order to pay salaries to workers in Israel, who receive compensation in shekels. This is while the demand for dollars may also be low because of the Thanksgiving holiday in the US. Beyond that, despite the corona, and perhaps even because of it, Israel continues to attract foreign investors looking for business opportunities - so local high-tech continues to boom.