Shekel-dollar rate rises as rate decision awaited

shekels
shekels

Most analysts expect the Bankof Israel to leave its interest rate unchanged today.

The trend on the local foreign exchange market is mixed this morning. The shekel-dollar exchange rate is currently 0.66% higher in comparison with Friday's representative rate, at NIS 3.8986/$, and the shekel-euro rate is down 0.93%, at NIS 4.2827/€.

The Bank of Israel is due to publish its interest rate decision for June today. Most analysts expect the central bank to leave its interest rate unchanged at 0.1%, although some do see a possibility of a cut to 0%.

US Federal Reserve chair Janet Yellen stated on Friday that interest rates could rise in the US this year if the economy shows improvement. She added that interest rate rises would be gradual, and that it would take several years until rates reached normal levels.

FXCM Israel says in its market review this morning, "After a five-week negative trend, the dollar has taken a positive turn, globally and against the shekel, following the clarification of the interest rate picture in the US. We could certainly be seeing the end of the deep correction in the dollar that has taken place in the past few weeks. The probability of a continued rise in the shekel-dollar rate is high. From a technical point of view, a rise above NIS 3.9/$ is likely to signal the end of the correction."

Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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