Money Matters - IsraTransfer Currency Exchange Weekly Round-Up Podcast Episode 10

In this week's episode of MONEY MATTERS: THE WEEKLY CURRENCY EXCHANGE ROUND-UP, our Head of Trading, Daniel Engelsman takes a look at the latest market trends and currency updates.

📢 Tune in below for expert analysis and key takeaways!

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Disclaimer: The Company provides general information on currency exchange and transactions but does not offer legal, financial, or investment advice. Decisions related to buying or selling currency are solely the listener’s responsibility. The Company is not liable for any actions taken based on this content.

TRANSCRIPTION:

PRESENTER:

Welcome to Money Matters, the weekly currency roundup podcast brought to you by Isra Transfer. Whether you're a seasoned investor and expat managing your finances, or just curious about the world of currency exchange, you're in the right place. Each week, Isra Transfer's co-founder and head of trading, Daniel Engelsman, will inform us of the latest trends, insights, and market movements that could impact your money.

From currency fluctuations to economic news, we're here to equip you with everything you need to navigate the ever-changing landscape of foreign exchange. So let's dive into this week's roundup. Daniel, what's the latest update on the exchange rate?

DANIEL ENGELSMAN:

I'm Daniel Engelsman, head of trading and co-founder at Isra Transfer, and I'm going to bring you all the details about what's been happening with the Shekel over the last week. For any of you that don't subscribe to our daily exchange rate mailout, please come go to our website and do so. There you'll get all the updates on the exchange rate from the previous day.

And the reason I say that is this week, it's been full of red. What does red mean? It means that the rates have been coming down. We'll start with the dollar.

As of yesterday, the rate stood at 3.487, a little decrease from the previous day, which was above 3.5. So a little strengthening of the Shekel in the short term. Over the past week, the rates dropped from 3.5240 on the 3rd of June to the low that we saw yesterday at 3.487. It's probably influenced by the US Federal Reserve's current stance on interest rates, which remain at between 4.25% and 4.5% as of their last meeting. But the markets are expecting potential cuts to below 4% by the end of the year due to the uncertainties surrounding things like tariffs.

And then on the contrary, we have the Bank of Israel that's held its rate steady at 4.5% for the 10th consecutive meeting with high inflation and obviously the geopolitical tensions that we're seeing here in Israel. So that's supporting the Shekel's relative strength. So compared to a year ago when the rate was 3.70 and above, the Shekel has grown in value by nearly 6%.

So lots of economic days and interest rates are really a big driver of what's going on with the US dollar.

PRESENTER:

And what about the British Pound, Canadian Dollar and Euro?

DANIEL ENGELSMAN:

Similar with the pound, the British pound as of yesterday was trading at 4.7226. Over the last week, it's fluctuated from a high of 4.78 on June 2nd to dipping to its level that it is at the moment. The weakening of the pound can be tied a bit again to interest rates.

Bank of England recently cut its base rate to 4.25% and then expecting further reductions up to maybe down to 3% by the year end, which would definitely put pressure on the pound downwards. What happens is when an interest rate in one currency is a lot lower than that of the other currency, generally you'll see the exchange rate move down. So in this case, we have the pound where interest rates are likely to go down to maybe 3% and more than likely the interest rate rather in Israel is likely to stay at about 4.5%. And as that difference between the interest rates widens, you should see further Shekel strength.

As for the Canadian dollar, interest rates are at 2.75% at the moment. So we've seen the exchange rate fall over the last week from a high of 2.57% and a half down to lows of 2.54%. So it has been moving down. Just keep a close eye on that.

Not as much movement as the other currencies. Lastly, the euro, as of yesterday, the euro fell below 4. It was 3.983, which is a slight dip from the day before. But in the past week, we saw it as high as 4.047 on the 2nd of June.

And we saw it as low as 3.961 a little bit before that. So it could be linked to the European Central Bank's recent 25 basis point cuts to its current rate of 2%. Again, the theme this week is interest rates and what's been happening.

And that's why the Shekel is remaining strong because interest rates are staying relatively high in Israel.

PRESENTER:

And finally, any advice for those looking to exchange funds over the coming weeks?

DANIEL ENGELSMAN:

Always like to finish with a little bit of a tidbit of information at the end of this. So, you know, soothing the local money service business is really important, especially when you're transferring money to Israel.

Obviously, we, Israel Transfer, do this. Why is it better to use a local currency place rather than somewhere in your own country? It's to do with us knowing the local regulations, knowing how to deal with banks when they give a problem. And notoriously, they do give problems for large amounts of money being received into a bank account.

A foreign money transfer company won't really know how to write a letter to the bank to help you clear those funds or who to speak to on the phone. And we have that expertise in the local market. So just bear that in mind when you're thinking of transferring funds, especially large amounts from overseas into Israel.

I wish you all a good week, and we will speak again next week.

PRESENTER:

And that wraps up this week's Currency Weekly Roundup.

We hope you found this episode informative and engaging. If you enjoyed today's discussion, be sure to subscribe and let us know if you have any questions you'd like Daniel to answer. For more information on currency exchange and to stay updated with the latest trends, visit us at isratransfer.com. Join us next week for more insights and analysis.

Until then, stay informed and take care.

Disclaimer.

This podcast provides general information about currency exchange and buying or selling currency.

It does not constitute legal, financial, or investment advice. Listeners should make independent decisions and seek professional guidance. The company is not liable for any actions taken based on this content.