Two days after the surprise decision by the Bank of Israel to leave the November interest rate unchanged at 0.25%, rather than cutting it, the shekel continues to strengthen on the foreign exchange market against the dollar and the euro. The shekel-dollar rate is currently down 0.54% in comparison with yesterday's representative rate, at NIS 3.745/$. The shekel-euro rate is down 0.19%, at NIS 4.772/€.
Yesterday the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.765/$, down 0.607% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 4.781/€, down 0.518%.
Market traders and analysts insist that the strengthening of the shekel against the dollar is only temporary and is just a correction following the recent gains by the dollar. Foreign Currency 24 CEO David Mesika said, "An attractive price to buy dollars would be in the region of NIS 3.71/$ to NIS 3.80/$.
The shekel is strengthening against the dollar even though the dollar is slightly weaker on world markets. The shekel has gained 1.2% against the dollar over the past few days.
Published by Globes [online], Israel business news - www.globes-online.com - on October 29, 2014
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