The shekel continues to strengthen against the dollar, as it weakens a bit against the euro.
The shekel-dollar exchange rate is down 0.55% to NIS 3.6728/$, and the shekel-euro exchange rate is up 0.07% to NIS 4.9463/€.
In global trade, the dollar is slightly stronger against the euro, trading at $1.3476/€.
On Friday, the representative rate was set at NIS 3.693/$, after the Bank of Israel intervened in the foreign currency market, buying tens of millions of dollars. It appears only a matter of time before Governor of the Bank of Israel Prof. Stanley Fischer intervenes again some time today, to halt a further slide by the dollar against the shekel.
The strong stock market rallies around the world in September have driven down the value of the dollar against many currencies during that time.
Locally, a major factor in foreign currency trading will be today's interest rate decision which will be announced at 5:30pm. Fischer faces a dilemma: While he wants to cool off very hot real estate prices by raising rate, but a stronger shekel hurts exporters' competitive standing.
A Bloomberg survey of 16 economists shows that 12, or 75%, expect Fischer to raise the interest rate another 0.25% to 2%.
Published by Globes [online], Israel business news - www.globes-online.com - on September 27, 2010
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