Shekel resumes gains

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock

FXCM Israel: The Bank of Israel has adopted a more aggressive stance against speculators.

The shekel is strengthening against the dollar and against the euro today. In morning inter-bank trading, the shekel-dollar exchange rate was down 0.43% from yesterday's representative rate at NIS 3.6401/$, and down 0.31% against the euro at 3.931€. The shekel is stronger today after weakening sharply yesterday when the Bank of Israel bought hundreds of millions of dollars in foreign currency for the third successive day. The Bank of Israel has bought at least $700 million in foreign currency this week.

Yesterday, the Bank of Israel set the shekel-dollar representative rate up 1.162% compared with Monday's rate at NIS 3.656/$, and the representative shekel-euro rate was set up 0.947% at NIS 3.944/€.

FXCM Israel said in its daily review this morning, "The Bank of Israel has intensified its struggle against speculators and again intervened in trading by buying foreign currency through foreign banks. Following this intervention, the exchange rate climbed to NIS 3.64/$. It seems that the Bank of Israel is adopting a much more aggressive approach due to the falling exchange rate. These many interventions make it tough for speculators, creating uncertainty for them and increasing the risks and they may take a step back "until the rage passes over." Now we must wait and see if the market itself can push the shekel-dollar rate upwards above NIS 3.67/$, the next resistance level. Worldwide the dollar index is at its lowest point since February 3 and the market is becoming impatient at President Trump's inaction on his election promises to cut taxes and reduce regulation."

Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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