Shekel continues to weaken

Shekels Photo: Shutterstock

FXCM Israel: The Bank of Israel's interventions in foreign exchange trading are part of a fierce war against speculators.

The shekel is weakening against the dollar and against the euro today. In morning inter-bank trading, the shekel-dollar exchange rate was up 0.27% from yesterday's representative rate at NIS 3.656/$, and up 0.58% against the euro at 3.905/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.496% compared with Monday's rate at NIS 3.646/$, and the representative shekel-euro rate was set up 0.388% at NIS 3.882/€.

FXCM Israel said in its daily review yesterday, "The Bank of Israel continues to intervene in trading in a fierce war against speculators, but the shekel-dollar exchange rate has only risen slightly. Only if the two currencies rise above the next major resistance point of NIS 3.66-3.67/$ will the picture change. However, there is a growing acknowledgement in the market that the shekel is too strong and that the Bank of Israel will continue with its aggressive policy and so we might be seeing a turning point."

Tomorrow, the Bank of Israel Monetary Committee will publish its interest rate decision. The bank is not expected to change the rate but any comment by Governor Karnit Flug about the exchange rate and policies to restrain the appreciation of the shekel could cause volatility in the shekel-dollar exchange rate.

Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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