The shekel is strengthening against the US dollar and the euro in interbank trading this morning, halting its recent slide against the dollar. The shekel is trading down 0.44% against the dollar at NIS 3.679/$ and down 0.10% against the euro at NIS 4.644/€.
Yesterday, on the foreign exchange market, the Bank of Israel set the representative shekel-dollar rate 0.244% higher, at NIS 3.6950/$, and the shekel-euro rate was set 0.709% lower, at NIS 4.6486/€.
FXCM Israel Research Department said this morning, "The shekel-dollar exchange rate continues to tread water around NIS 3.68/$. Yesterday the exchange rate tried to break above NIS 3.695/$ but slipped back. The proximity to NIS 3.7/$ is slowing the depreciation of the shekel. If we continue to see this phenomenon for several more days, long traders may despair and sell and this may sweep the exchange rate down and give the go-ahead for a correction. Only falling below NIS 3.66/$ will indicate a change in momentum downwards."
The shekel has lost 8% against the dollar since July 15 2014 when the exchange rate was NIS 3.405/$. The exchange rate is at its highest since it was NIS 3.702/$ in May 2013. In February 2013 the rate was even higher at NIS 3.733/$.
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2014
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