The shekel is again strengthening today against the dollar and is weakening against the euro after the Bank of Israel Monetary Committee announced on Monday that it was leaving the December interest rate unchanged at 0.1%. In late morning inter-bank trading, the shekel was down 0.44% against the dollar from yesterday's representative rate at NIS 3.831/$, and up 0.15% against the euro at NIS 4.082/€ - having hit a 14 year low earlier this week.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.233% compared with Monday's rate at NIS 3.848/$, and the representative shekel-euro rate was set down 0.313% at NIS 4.076/€.
FXCM Israel said in its morning survey, "The shekel-dollar exchange rate continues its strong correction downwards and over the past day has fallen to NIS 3.83/$, its lowest point since November 16. The rate has been correcting since November 21 when it peaked at NIS 3.885/$. Falling below NIS 3.82/$ could lead to testing the NIS 3.80/$ lower limit of the trading band. However, the price structure still points to a positive trend for the dollar against the shekel in the medium term."
"Worldwide too, the dollar continues to correct downwards due to profit taking after the US currency rose to a 14-year high following the election of Donald Trump. It seems that the dollar's retreat reflects a reduction in risk by traders ahead of some key risk events in the coming few days the OPEC meeting of oil exporters where the oil producers may agree to freeze oil production, the Italian referendum that may signal another rise in the forces opposed to the EU, and the US Federal Reserve meeting on interest rates, and finally next month the presidential swearing in ceremony for Donald Trump. These events could cause high volatility in assets in the financial markets, and the dollar in particular.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2016
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