The shekel has strengthened against the dollar and euro in morning inter-bank trading today, because of the postponement of the US attack on Syria because of President Barack Obama's decision to seek Congressional approval, which has lowered the risk premium on the Israeli market and caused the shekel to strengthen. The shekel-dollar exchange rate has fallen 0.5%, compared with Friday's representative rate, to NIS 3.597/$, and the shekel-euro exchange rate has fallen 0.63% to NSI 4.754/€.
On Friday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.614/$, down 0.44% on Thursday's rate, and set the shekel-euro representative exchange rate at NIS 4.783/€, down 0.61%.
In international markets, the dollar is mixed against leading currencies: the euro has weakened 0.15% against the dollar to $1.32/€, the pound has strengthened 0.3% against the dollar to $1.554/£, and the dollar has strengthened 0.5% against the yen to ¥98.62/$.
In its market survey, FXCM Israel said today, "Despite the postponement of the American attack, Israel's geopolitical link to the situation in Syria places the shekel at high risk. The shekel will continue to be at high risk in the coming period, and when the region heats up again, the shekel is liable to weaken again."
Published by Globes [online], Israel business news - www.globes-online.com - on September 2, 2013
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