Shekel rebound continues

shekel  picture: thinkstock
shekel picture: thinkstock

UTrade: The shekel appreciation is short term, in the long term it will weaken against the dollar.

The shekel continued to strengthen against the US dollar and the euro in interbank trading this morning, as the shekel rebounds for the second day running from its recent depreciation. The shekel is trading down 0.63% against the dollar at NIS 3.649/$ and down 0.40% against the euro at NIS 4.606/€.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.672/$, down 0.622% on Tuesday's rate, and set the shekel-euro representative exchange rate at NIS 4.624/€, down 0.527%.

Sources in Foreign Currency 24's main trading room said this morning, "At the opening of trading today the working assumption was that the shekel-dollar exchange rate will struggle to break the NIS 3.70/$ barrier and in the short term we may see a downward technical correction as the shekel depreciates towards the end of trading on Yom Kippur eve tomorrow. The next test for the two currencies in the short term will be one of two possibilities: If it breaks below the NIS 3.65/$ barrier then consolidating below this support level could lead down to the next support level of NIS 3.60/$. On the other hand, breaking above NIS 3.70/$ and consolidating there could see it lead to NIS 3.80/$.

Utrade Investment House senior analyst Elad Salomon said this morning, "In the short terms the shekel-dollar rate is seeing a small correction between NIS 3.57 and 3.65 but in the long term there is no change in the working assumption that the dollar is before a major appreciation against global currencies in general and the shekel in particular."

Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

shekel  picture: thinkstock
shekel picture: thinkstock
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