Shekel continues weakening against dollar

shekel  picture: Tamar Mitzpi
shekel picture: Tamar Mitzpi

FXCM: We may only be at the beginning of a turnaround in the exchange rate.

The shekel continues to weaken against the US dollar this morning. The shekel-dollar rate is currently up 0.36% compared with yesterday's representative rate, at NIS 3.5457/$. The shekel-euro rate is also up, by 0.08%, at NIS 4.6965/€.

Yesterday, the representative shekel-dollar rate consolidated its position above NIS 3.5, and was set 0.3% higher, at NIS 3.533/$. The shekel-euro rate declined by 0.2% to NIS 4.692/€.

FXCM Israel says in its market review this morning, "The shekel-dollar rate continues climbing almost vertically upwards. The rise can mainly be explained by the global strengthening of the US dollar, with the global dollar index reaching its highest level since September 2013 yesterday, after the release of the protocols of the last meeting of the Federal Reserve showing that some members of the US central bank's management support a rise in US interest rates earlier than planned if the US economy continues to perform satisfactorily.

"Locally, the continuing escalation in the conflict with Hamas also weighed on trading in the shekel, which is now being hit on all fronts. The next significant level is NIS 3.55/$, and it is possible that we will see a temporary halt at this level. Sooner or later the momentum will falter and the pair will correct downwards, but there is no doubt that what has happened in trading in the dollar-shekel pair in the past week has long-term consequences and it could certainly be that we are only at the beginning of a turnaround in the exchange rate."

Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

shekel  picture: Tamar Mitzpi
shekel picture: Tamar Mitzpi
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