The shekel has strengthened slightly this morning against the major currencies following yesterday's announcement by the Bank of Israel that it would leave its interest rate unchanged for February at 0.25%. The shekel-dollar exchange rate is currently down 0.21% in comparison with yesterday's representative rate, at NIS 3.9897/$, and the shekel-euro rate is down 0.08%, at NIS 4.4866/€.
Prico Asset Management CEO Yossi Fraiman comments this morning, "Rises on the stock exchange in Tokyo and stabilization of the dollar/euro rate below $1.1350/€ support 'business as usual', with the markets expecting continued demand for the dollar, weakness in the euro, and continuation of the move to equities in the light of the low interest rate levels of the major currencies.
"Today, in the US, the Federal Open Market Committee begins its two day session, with positive US macro figures expected to be released supporting the strength of the dollar. The cold snap and snow storms could affect trading on stock exchanges in New York, and also economic activity. Last year's harsh winter had a negative effect on economic activity, and it took months for the US economy to return to normal. In Israel, the weakness in fuel prices contributes to a fall in demand for the dollar on the part of energy companies, while the wave of exits by local companies, resurgent exports, and incoming capital in foreign direct investment contribute to excess supply and are limiting the depreciation of the shekel."
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2015
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