The shekel is again weakening against the dollar, and the euro in inter-bank trading this morning. The shekel-dollar rate is up 0.17% at NIS 3.878/$, and the shekel-euro rate is up 0.37% at NIS 4.836/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.871/$, up 0.207% on Tuesday's rate, and set the shekel-euro representative exchange rate at NIS 4.819/€, up 0.312%.
Yesterday there were reports that the Bank of Israel intervened in foreign currency trading to purchase $200 million in foreign currency and that a further $600 million will be purchased before the end of the year.
FXCM Israel research department said this morning, "Sentiment towards the shekel and the Israeli economy is so low that even if there are global reasons to sell dollars nobody is prepared to buy the shekel and consequently we see no correction, even in the short term.
FXCM added, "Today we will see Thanksgiving celebrations in the US and trading volumes on global markets are expected to be low because of the absence of trading in the US. Consequently, it is likely that we'll see a lack of volatility in the shekel-dollar exchange rate through the end of the trading week. On a technical level, a convincing break above NIS 3.87/$ will pave the way to NIS 3.9/$.
Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2014
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