Shekel-dollar rate retreats from peak

shekel  picture: Tamar Mitzpi
shekel picture: Tamar Mitzpi

After yesterday's near 1% rise, the exchange rate has moderated this morning; the shekel-euro rate continues to climb.

After the representative shekel-dollar exchange rate jumped by nearly 1% yesterday, this morning the rate has fallen by 0.29% to NIS 3.7352. The shekel-euro rate is currently 0.21% higher than yesterday's representative rate, at NIS 4.7942/€.

The dollar has also weakened on world markets against the other major currencies: the dollar-euro rate is up about 0.2%, at 1.282, the dollar-sterling rate is up about 0.15%, at 1.618, and against the yen the dollar has weakened by about 0.5% to 106.4 yen/$.

FXCM Israel says in its market review today that in the medium term the US dollar will continue strengthening because of the expectation that at its next meeting the US Federal Reserve will end its quantitative easing program, and that an interest rate rise will then be on the agenda. "A realistic target for the shekel-dollar rate is NIS 3.8/$ by the end of the year, because of the gap in economic growth and the interest rate expectations for the dollar versus the shekel. In the end, we should see a correction, but at the moment there is no technical sign indicating this, and the speculators apparently feel secure in pushing the exchange rate higher to new peaks before they decide to take their profits and stop."

Published by Globes [online], Israel business news - www.globes-online.com - on October 21, 2014

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

shekel  picture: Tamar Mitzpi
shekel picture: Tamar Mitzpi
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