The shekel is stable against the US dollar and the euro in interbank trading this morning after recent volatility. The shekel is trading up 0.03% against the dollar at NIS 3.687/$ and down 0.14% against the euro at NIS 4.675/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.686/$, up 0.765% on last Tuesday's rate before the Rosh Hashanah Jewish New Year holiday, and set the shekel-euro representative exchange rate at NIS 4.682/€, down 0.654%. This means that the shekel has depreciated by 0.8% against the dollar since July, and is at its weakest against the US currency in 16 months.
FXCM Israel Research Department said this morning, "The local foreign currency market is a market for buyers only at the moment but a fall in volatility can be seen, and this might indicate the end of the battle in the trading rally, which began two months ago. The main data in the markets this week will be the US employment figures, and if we see the continued improvement trend in the US employment market then the market will continue to price an interest rate hike by the US Fed."
Prico CEO Yossi Fraiman said, "The full potential for shekel depreciation has not yet been realized and while the dollar is trading above the NIS 3.62 and NIS 3.64 levels then the depreciation trend supports continued movement towards NIS 3.7 and only in the area of NIS 3.72 to NIS 3.74 is foreign currency selling expected."
Published by Globes [online], Israel business news - www.globes-online.com - on September 30, 2014
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