The shekel-dollar exchange rate has again moved above the psychologically significant NIS 4/$ level. The Bank of Israel set the representative rate at NIS 4.014/$ today, 1.8007% above Thursday's representative rate (no representative rates were set on Friday because of the Passover holiday). Since the representative rate was set this afternoon, the pair has fallen back below NIS 4/$. The exchange rate is currently 0.35% below the representative rate, at NIS 3.9998/$.
The representative shekel-euro rate was set 0.2125% lower, at NIS 4.2259/€.
FXCM Israel said in its market review this morning, "The shekel-dollar pair is again testing the region near NIS 4/$. The upward momentum in the exchange rate mainly derives from the momentum of the US dollar on world markets, where it has strengthened for two successive weeks after a period of correction. A rise above NIS 4/$ could once more encourage the speculators to push the pair towards new peaks, with the first resistance level coming at NIS 4.02/$.
"However, given previous failures to make the breakthrough out of the current range, whether upwards or downwards, it is still not clear whether the market is ripe for a significant move. Despite the tepid economic data and the Federal Reserve's obscure rhetoric, the market still believes that the Federal Reserve will introduce a first interest rate hike in the course of this year, at a time when most other major central banks, as well as the Bank of Israel, are following an expansive monetary policy."
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015