The shekel has opened mixed against the major currencies this morning. The shekel-dollar exchange rate is currently up 0.7% in comparison with Friday's representative rate, at NIS 3.7801/$, and the shekel-euro rate is down 0.31%, at NIS 4.2254/€.
FXCM Israel says in its market review this morning, "The Bank of Israel will make its monthly interest rate announcement today, but no earth shattering news is expected. The central bank is not seen likely to raise its interest rate today, and, in the light of the low inflation rate, an interest rate hike is not on the horizon.
"The expectation of a widening of the interest-rate gap between the US dollar and the shekel can be expected to strengthen the dollar-shekel pair in the medium term, but, at present, because of the uncertainty over the US Federal reserve's likely moves, the dollar is still showing weakness on the foreign exchange markets. As long as the pair remains below the NIS 3.80/$ threshold, the tendency is negative."
Published by Globes [online], Israel business news - www.globes-online.com - on August 29, 2016
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