Shekel strengthens

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock

FXCM Israel: We have seen a slight retreat by the dollar, but it is expected to continue to strengthen in the medium to long term.

The shekel is strengthening today against the dollar and against the euro. In early afternoon inter-bank trading, the shekel was down 0.35% against the dollar from Friday's representative rate at NIS 3.857/$, and down 0.12% against the euro at NIS 4.095/€.

On Friday, the Bank of Israel set the shekel-dollar representative rate down 0.129% at NIS 3.871/$, and the representative shekel-euro rate was set up 0.149% at NIS 4.10/€.

FXCM Israel said in its morning survey, "The shekel-dollar exchange rate continues to maintain its momentum around the NIS 3.86-3.87/$ mark. The key exchange rate is NIS 3.88/$. Breaking above that would pave the way to the NIS 3.90/$ upper level. Worldwide, the dollar index, which has strengthened 6% over the past two months, continued its momentum over the past week and climbed to its highest level since April 2003 due to the expected expansionist fiscal policies of president elect Donald Trump, which would bring about higher inflation, and require the US Federal Reserve to raise interest rates faster than planned. Although we have seen a slight retreat in the dollar on profit taking, but it is expected to continue to strengthen in the medium to long term.

Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2016

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

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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