Shekel weakens as Berlusconi bows out

The shekel is losing ground sharply against the dollar as the Italian debt crisis sends markets into tailspin.

The shekel is sharply weakening against the dollar in inter-bank trading amid market relief that Italian Prime Minister Silvio Berlusconi announced that he would resign after parliament passes economic reform laws. However, the Italian debt crisis is deepening, sending markets into another tailspin. The shekel-dollar exchange rate is up 1.05% to NIS 3.713/$, compared with yesterday's representative rate, but the shekel-euro exchange rate is down 0.08% to NIS 5.064/€.

In international markets, the dollar is trading at $1.38/$ against the dollar.

As the Greek drama turns to Roman theater, markets welcomed Berlusconi's announcement. Wall Street rose yesterday, Asian markets rose today and European markets are rising at the opening.

China today announced that inflation rose 5.5% in the past 12 months, indicated to a sharp slowdown in its economic growth. The inflation rate was the lowest in five months, and well above the government target of 4%.

Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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