The shekel is weakening against the dollar and strengthening against the euro in inter-bank trading today. The shekel-dollar exchange rate is trading up 0.20% at NIS 3.994/$ and the shekel is trading down 0.45% against the euro at NIS 4.458/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.986/$, up 0.504% on Friday's rate, and set the shekel-euro representative exchange rate at NIS 4.478/€, up 0.688%.
FXCM Israel Research Department said this morning, "The shekel-dollar exchange rate is testing the NIS 4/$ level. At least at this time the psychological barrier does not seem to be deterring speculators. At a structural level, the significant rate is the January peak of NIS 4.016/$. Breaking above that record would mark a new peak in the upward trend that began in August 2014. Despite the sharp rise last week and the expectations of a required correction or stabilization, in the current circumstances it is possible that successfully breaking above the peak will give an additional push for a rise and pull the market for another wave of long trading. At the moment trading is one way."
FXCM added, "Worldwide the dollar continues to strengthen with the world dollar index trading at an 11-year high due to growing confidence in the US economy, and the gap with other developed economies that are treading water."
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2015
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