Fed boosts shekel against dollar

Shekels Photo: Shutterstock

FXCM Israel: The Fed has cut its growth forecast, lowering rate hike expectations this year.

The shekel is strengthening today against the dollar and weakening against the euro after the US Federal Reserve yesterday decided to keep the interest rate unchanged. In morning inter-bank trading, the shekel was down 0.58% against the dollar from yesterday's representative rate at NIS 3.756/$, and was up 0.24% against the euro at NIS 4.221/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.053% from Tuesday's rate at NIS 3.778/$, and the representative shekel-euro rate was set down 0.301% at NIS 4.211/€.

FXCM Israel said in its morning survey, "The shekel-dollar exchange rate fell below NIS 3.77/$ after the US Federal Reserve, as expected, yesterday kept the interest rate unchanged. What is weighing on the dollar, worldwide and against the shekel, were the contradictory messages received from the Fed meeting. In the general statement, the Fed expressed support for the US economic situation, strengthening the belief that the Fed will indeed raise the interest rates in December. However, the full report that was published indicated major difference of opinion between the Fed's board members with some speaking about interest rates rising in a gradual and planned manner but three members even saying they don't expect a rate hike in 2016. The Fed also lowered its growth and inflation forecasts, which has tempered interest rate hike expectations."

"Regarding the shekel-dollar exchange rate, NIS 3.75/$ is an important resistance point. Breaking below that is likely to speed up the strengthening of the shekel against the dollar."

Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2016

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

View comments in rows
Update by email about comments talkback
Your name
Please insert your name
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2016