The shekel is strengthening against the dollar and the euro in inter-bank trading this afternoon. The shekel-dollar exchange rate is trading down 0.33% at NIS 3.917/$ and the shekel is trading down 0.34% against the euro at NIS 4.542/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.93/$, up 0.409% on Friday's rate, and set the shekel-euro representative exchange rate at NIS 4.558/€, up 0.196%.
FXCM Israel research department said this morning, "There is no trigger strong enough to propel the shekel-dollar rate above NIS 4/$ or to correct the exchange rate downwards. The shekel-dollar exchange rate has failed to break above NIS 3.95/$, and slipped to NIS 3.91/$, and is now moving in the NIS 3.90-3.95 range. The dollar is also trading in a narrow range on world markets."
FXCM Israel added, "Most attention in the foreign exchange market is now focused on the euro, which is at high risk this week ahead of the European Central Bank interest rate meeting on Thursday, which is expected to launch a massive expansion of its quantitative easing plan, similar to the US Federal Reserve program after the 2008 crisis. This could mean massive printing of euros, possibly as much as €600 billion. This would signal the start of a depreciation of the euro against all currencies, including the shekel. The shekel is at its strongest against the euro since October 2002.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2015
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