The shekel continues to weaken against the US dollar. The shekel-dollar rate is currently 0.33% higher than yesterday's representative rate, at NIS 3.7543/$. Against the euro, the shekel has strengthened, with the rate down 0.22%, at NIS 4.7416/€.
"The shekel-dollar is rising for the fourth successive day," says FXCM in its market review this morning, "and in the past twenty-four hours has even managed to surpass last week's NIS 3.755/$ peak. The upward momentum in the exchange rate this week stems from the strengthening of the dollar on world markets. After two negative weeks, this week the dollar is again on the rise, because of rises on Wall Street and positive macro numbers released in the US demonstrating the gap between the US and other developed economies, and also because of fears for the stability of the financial system in the euro block and estimates that the European Central Bank will embark on a quantitative easing program."
In its market review, Prico says, "The shekel-dollar rate continues to move within a narrow range, with the pro-dollar trend dominant and supporting a further rise in the rate towards new peak levels. The rate needs to break through the NIS 3.72-3.76/$ box to support continued movement towards the NIS 3.80/$ level."
In its current monthly survey, UBS estimates that the shekel-dollar rate will reach NIS 3.82/$ in three months and NIS 3.85/$ in six months. Goldman Sachs sees the rate at NIS 3.9/$ in twelve months' time. Its previous projection was NIS 3.66/$.
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2014
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