The shekel is strengthening against the dollar and the euro in inter-bank trading this morning on the foreign exchange market after the Bank of Israel decided to leave interest rate for January unchanged at the all-time historic low of 0.25%. The Israeli currency was also boosted by the Bank of Israel raising its 2015 growth forecast to 3.2% from 3%.
The shekel-dollar exchange rate is trading down 0.38% at NIS 3.914/$ and the shekel is trading down 0.93% against the euro at NIS 4.748/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.929/$, up 0.512% on the rate last Wednesday, and set the shekel-euro representative exchange rate at NIS 4.793/€, up 0.385%.
FXCM Israel research department said this morning, "The shekel-dollar exchange rate will continue to tread water above the NIS 3.90/$ level as it did throughout the past week since Christmas. Trading will continue around the key NIS 3.90/$ level until the end of the year. The days between Christmas and New Year see very thin trading on global markets with no special movement recorded. Only when trading reopens in 2015 will we see in which direction the momentum is gaining and if the shekel correction and appreciation continues.
Meanwhile, the strengthening of the dollar on global markets continues with the strongest levels the US currency has recorded since April 2006. 2015 should see this trend continue with the US Fed expected to raise interest rates, while the state of the shekel is quite bleak with elections and the balance of forces such that any coalition formed will struggle to survive."
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2014
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