The shekel continues strengthening against the dollar and against the euro in inter-bank trading today, boosted by the far stronger than expected growth figures for the fourth quarter of 2014. The shekel-dollar exchange rate is trading down 0.29% at NIS 3.854/$ and the shekel is trading down 0.60% against the euro at NIS 4.388/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.865/$, down 0.643% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.415/€, down 0.581%.
FXCM Israel Research Department said this morning, "The shekel has been strengthening slightly against the dollar and trading around 3.85/$, the lower end of last week's range. Falling below this rate could speed up a further fall towards NIS 3.82/$. Worldwide the dollar is also relatively weak despite the fundamental conditions supporting the continued strengthening of the dollar in 2015, both because of higher US economic growth and expectations that the US Federal Reserve will raise the interest rate. Volatility in foreign currency training around the world has been relatively low because of holidays in the US and China."
FXCM added, "At the moment, the dollar is mainly influenced by what is happening to the euro. Despite the failure of talks between Greece and EU leaders, markets have reacted with relative moderation. It seems that the markets are beginning to take in that ultimately Greece may pull out of the euro zone. Such an event would cause alarm in the market in the short term but in the long term it might even actually contribute to stability, and strengthen the euro bloc, if one of the weakest and most intractable members was to withdraw."
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2015
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