The shekel is stable against the dollar and strengthening against the euro in inter-bank trading this morning. The shekel-dollar exchange rate is trading up 0.05% against the dollar at NIS 3.973/$ and the Israeli currency is down 0.93% against the euro at 4.263/€
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.971/$, down 0.050% on the rate set last Friday, and set the shekel-euro representative exchange rate at NIS 4.302/€, down 0.394%.
FXCM Israel research department said this morning, "The shekel-dollar exchange rate continues to tread water in the NIS 3.90-4/$ range at around NIS 3.96/$. These price limits reflect the market's uncertainty about the timing of the US Federal Reserve's interest rate hike, on the one hand, and the Bank of Israel's policy intentions, on the other hand.
FXCM Israel added, "On the local market there is confusion regarding the Bank of Israel's next steps, and it is not yet clear whether dramatic measures such as quantitative easing or lowering the interest rate below zero are on the agenda. The market will mainly monitor and follow macroeconomic data, growth and inflation in order to attempt to assess the likelihood that the Bank of Israel will continue its present policy line. At the moment it is difficult to see a trigger that will cause the shekel-dollar exchange rate to break above NIS 4/$ or fall below NIS 3.90/$."
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2015
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