Atrade: Market fears serve the Bank of Israel's interest because foreign investors prefer to buy dollars.
In a reversal of fortune, the shekel has weakened against the dollar, but strengthened against the euro in morning inter-bank trading today. The shekel-dollar exchange rate has risen 0.29%, compared with yesterday's representative rate, to NIS 3.635/$, and the shekel-euro exchange rate was fallen 0.35% to NIS 4.743/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.624/$, down 0.08% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.759/€, up 0.43%.
In international markets, the dollar has weakened against leading currencies. The dollar has fallen 0.1% against both the euro and pound to $1.3047/€ and $1.5255/£, and it has fallen 0.15% against the yen to ¥97.98/$.
Atrade said today that investor flight to the yen and dollar was the first warning signal that something bad is about to happen. It said that the dollar is weakening in international markets and from the Bank of Israel's intervention. "Market fears serve the Bank of Israel's interest because foreign investors prefer to buy dollars in times of uncertainty when stock markets are falling."
Published by Globes [online], Israel business news - www.globes-online.com - on April 18, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
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