Shekel gains ground despite dollar's global strength

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock

FXCM Israel: While the rate is below NIS 3.85/$, there is a likelihood that we will see movement down towards NIS 3.80/$.

The shekel is strengthening against the dollar and against the euro. In early afternoon inter-bank trading, the shekel was down 0.17% against the dollar from yesterday's representative rate at NIS 3.837/$ and was down 0.28% against the euro at NIS 4.217/€. The shekel remains strong against the dollar, even though the dollar index is trading worldwide at a 4-month high.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.052% from Monday's rate at NIS 3.844/$, and the representative shekel-euro rate was set down 0.064% at NIS 4.229/€.

FXCM Israel said, "The shekel-dollar exchange rate continues to tread water just below the NIS 3.84/$ level. While the two currencies remain below NIS 3.85/$, then the tendency is downwards and there is a likelihood that we will see movement towards the lower end of the trading band at NIS 3.80/$. The key event will be the US Federal Reserve's interest rate decision. In recent weeks, after the improved US macroeconomic figures, and the calming of global markets after the Brexit storm, the belief has grown that the Fed will implement one more rate hike this year, with the futures market pricing in a 50% likelihood of a rate hike in December."

Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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