FXCM Israel: Investors are rethinking the likelihood of an interest rate hike by the Federal Reserve.
The Israeli shekel continues to strengthen against the major currencies this morning. The shekel-dollar exchange rate is down for the third successive trading session, by 0.67% in comparison with yesterday's representative rate, at NIS 3.9295/$. The shekel-euro rate is down 0.23%, at NIS 4.6528/€.
On world markets, the dollar-euro rate is around $1.183/€.
FXCM Israel says in its market review this morning, "The dollar is weakening on world markets for several reasons. First of all, the continuing decline in the price of oil is weighing on sentiment globally, while stocks fell on Wall Street yesterday, dragging the dollar down as well. Moreover, the personal income figures released in the US on Friday along with the employment figures, indicating a decline in wages, raised questions about the strength of the economic recovery in the US, causing investors to think again about the likelihood of an interest rate hike by the US Federal Reserve. These will be the factors that for the time being will move the dollar on world markets and against the shekel the quality of the macro numbers in the US, and the oil price. If the oil price continues to drop and stocks decline more steeply, the dollar can be expected to weaken."
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2015
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