The euro continues to weaken this morning on the local and global foreign exchange markets against the backdrop of events in Greece. The shekel-euro exchange rate is currently down 0.13% in comparison with yesterday's representative rate, at NIS 4.1585/€. The shekel-dollar rate is currently 0.15% down, at NIS 3.7704/$.
Yesterday, the representative shekel-dollar rate was set 0.2% higher, at NIS 3,776/$, while the representative shekel-euro rate was set 0.5% lower, at NIS 4.163/€.
Today, a day after the results of the referendum in Greece were announced showing 61% saying "No" to the austerity demands from Greece's creditors as a condition for a further rescue package, Eurozone leaders will hold a summit meeting in Brussels. Pressure is mounting on Greek Prime Minister Alexis Tsipras to present an improved offer to his country's creditors in order to prevent Greece from having to leave the Eurozone and to enable it to receive further aid from Europe.
FXCM Israel says in its market review this morning, "There is no doubt that we face a new and fateful stage in the Greek crisis. The moment of decision has arrived, both for the European negotiators and for Greece. If the European Central Bank continues to restrict the flow of money to the Greek banks, Greece's citizens will very soon feel a shortage of cash, and the need will arise for promissory notes in an alternative currency, which will signal Greece's de facto exit from the Eurozone. Such a chaotic state of affairs could be disastrous both for the Greek economy and for the Eurozone."
Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015