The shekel is strengthening against the dollar for the third straight day and is also stronger against the euro. In morning inter-bank trading, the shekel was down 0.36% against the dollar from yesterday's representative rate at NIS 3.844/$ while it was down 0.13% against the euro at NIS 4.276/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.516% from Tuesday's rate at NIS 3.858/$, and the representative shekel-euro rate was set down 0.465% at NIS 4.281/€.
FXCM Israel said in its morning survey, "After a stormy opening to the week the reverberations from the Brexit referendum decision have slightly subsided and the euro and sterling succeeded in closing stronger for the past two straight days. But this mild recovery was expected after several days of freefall but it would be premature to say that the storm has abated. Examining the repercussions of Brexit in the longer term, then there are many question marks and uncertainties regarding the process by which the UK would leave the EU. In practice, Brexit is yet to begin and this poses many challenges for the market and especially the euro and sterling which will find it difficult to recover amid such uncertainty. The dollar has been strengthening, including against the shekel, as investors seek safe havens but ultimately the dollar's fate will depend on the strength of the US economy."
"The shekel-dollar rate, after failing to break above NIS 3.90/$ has slipped back to NIS 3.85/$. While the two currencies remain in the NIS 3.80-3.90/$ band, it remains unclear what the future direction of the two currencies will be."
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2016
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