The shekel is stable against the dollar and against the euro in inter-bank trading this morning ahead of the US Federal Reserve's interest rate decision this evening. The shekel-dollar exchange rate is trading up 0.03% against the dollar at NIS 3.836/$, and up 0.17% against the euro at NIS 4.323/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.835/$, down 0.182% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.316/€, up 0.186%.
FXCM Israel research department said this morning, "The shekel-dollar exchange rate continues to tread water around NIS 3.84/$ as it awaits this evening's key event - the US Federal Reserve's interest rate decision. The widespread expectation is that the Fed will put up the rate in September and if the rhetoric heard today confirms that assessment then traders can allow themselves to start purchasing dollars again. The dollar, which has been retreating for some time, is also benefitting from the pressure that the euro is under. In the market the belief is growing that Greece won't reach a new debt settlement and will be forced to declare bankruptcy. This scenario may cause turbulence in the European markets and push the euro into freefall, in which case investors will find a haven in the dollar."
FXCM Israel added, "On a technical level the shekel-dollar rate is treading water between NIS 3.80-3.90/$. Falling below NIS 3.82/$ could push the rate towards NIS 3.80/$, while rising above NIS 3.87/$ could provoke speculators to push the rate above NIS 3.90/$. Until one of these boundaries is tested it is difficult to determine what will be the direction of trading even in the short term."
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2015
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