The shekel is weakening this afternoon in inter-bank trading against the dollar and strengthening against the euro. The shekel-dollar rate is up 0.26% at NIS 3.931/$ and the shekel-euro rate is down 0.73% at NIS 4.442/€.
Yesterday, the Bank of Israel set the shekel dollar representative rate up 1.475% from Tuesday's rate at NIS 3.921/$, and the representative shekel-euro rate was set up 0.551%, at NIS 4.475/€.
FXCM Israel research department said this morning, "Today is another day of record-breaking volatility on the financial markets, this time in the positive sense. After six consecutive days of sharp falls that brought about a negative technical correction on the markets, last night the main indices on Wall Street rose by about 4%, and they took the dollar with them. In China, a day after the interest rate was cut, the central bank also injected large amounts of capital into the financial system.
The recovery of the US stock market has also saw the dollar recover and push the shekel-dollar rate upwards yesterday to a new peak of NIS 3.94/$, its highest rate since April, although it subsequently fell back to NIS 3.925/$. However, it would be premature to say that global markets area back on positive tracks. Times of panic and sharp falls are often interspersed with some positive days. The markets will have to stabilize before the direction of the shekel-dollar rate becomes clear.
Published by Globes [online], Israel business news - www.globes-online.com - on August 27, 2015
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