The shekel continues to weaken against the dollar and the euro in inter-bank trading this morning after the Bank of Israel purchased $250 million in foreign currency yesterday.
The shekel-dollar exchange rate is trading up 0.24% at NIS 3.958/$ and the Israeli currency is up 0.66% against the euro at 4.364/€
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.948/$, up 0.560% on Tuesday's rate, and set the shekel-euro representative exchange rate at NIS 4.336/€, up 0.496%,
FXCM Israel research department said this morning, "The shekel-dollar exchange rate continues to recover from its large fall at the beginning of the week and has climbed above NIS 3.935/$. The market is currently in a state of confusion due to the uncertainty of the Bank of Israel's intentions and the US Federal Reserve's intentions. On the local scene, the market is waiting to shekel-euro exchange rate the minutes of the last Bank of Israel meeting to better understand whether the Bank of Israel will introduce qualitative expansion or cut the interest rate below zero. The next inflation figures too will provide a picture of the deflationary pressures and influence market expectations about the Bank of Israel."
FXCM Israel added, "The shekel-dollar exchange rate will remain in the NIS 3.90-4/$ limits until the picture becomes clear."
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2015
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