FXCM Israel: Fischer's departure creates uncertainty that will strengthen the dollar against the shekel.
The shekel was stable against the dollar and weakening against the euro in morning inter-bank trading, the day after Governor of the Bank of Israel Prof. Stanley Fischer unexpectedly announced that he is stepping down in June, two years before the end of his second term at the central bank. The shekel-dollar exchange rate fell 0.08%, compared with yesterday's representative rate, to NIS 3.726/$, and the shekel-euro exchange rate rose 0.07% to NIS 5.029/€.
On world markets, the dollar was trading virtually unchanged against the euro at $1.35/€.
FXCM Israel research department head Moshe Shalom said, "Fischer's resignation announcement creates uncertainty which can strengthen the dollar. Fischer's departure together with the uncertainty of the next coalition's ability to cope with the complex budgetary challenges including budget cuts and reducing the deficit will strengthen uncertainty in the domestic market. Therefore we see a positive change for the dollar even before we see this happening around the world."
Published by Globes [online], Israel business news - www.globes-online.com - on January 30, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
Adrian Filut and Stella Korin-Lieber