Shekel resumes depreciation in afternoon trading

shekel  picture: Tamar Mitzpi
shekel picture: Tamar Mitzpi

Market sources believe that the Bank of Israel purchased up to $200 million in foreign currency today.

The shekel is weakening against the dollar, and the euro in inter-bank trading this afternoon. After starting the day by strengthening against the dollar, the Israeli currency turned tail in the afternoon session. The shekel-dollar rate is up 0.18% at NIS 3.870/$, and the shekel-euro rate is up 0.25% at NIS 4.816/€.

Market sources believe that the Bank of Israel purchased up to $200 million in foreign currency today as part of the purchasing program to counter the effects of Tamar gas on Israel's foreign exchange market. The Bank of Israel is expected to buy up to $600 million by the end of the year within this program.

Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.863/$, down 0.026% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.804/€, up 0.211%.

FXCM Israel Research Department said today, "At the moment the US economy is showing the most encouraging rates of growth, while the central banks of Japan and the euro bloc are implementing quantitative easing, and the Chinese bank is lowering interest, the US Federal Reserve is expected to begin raising interest rates already in 2015, which will give the dollar an advantage against other global currencies. If economic data today is positive this will strengthen rate rise expectations towards the dollar and strengthen the US currency."

Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

shekel  picture: Tamar Mitzpi
shekel picture: Tamar Mitzpi
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