The shekel-dollar exchange rate resumed its upward climb at the opening of the week's trading on the foreign exchange market this morning. The shekel-dollar rate is currently 0.3% above Friday's representative rate, at NIS 3.721/$, after intially rising by nearly 0.5%. The shekel began the session weaker against the euro as well, but the rate is now 0.15% below Friday's representative rate, at NIS 4.7365/€.
FXCM Israel says in its market review today, "The speculators will find it hard to push the shekel-dollar rate higher when the dollar is retreating on global markets. Now, with the Jewish holiday season behind us, trading volumes on the foreign exchange market can be expected to return to normal, and this may lead to the shekel coming into line with the global trend against the US dollar, which is currently tending lower. In the past two weeks, despite the distinct weakness of the dollar worldwide, the shekel continued to weaken against it.
"At the technical level, we are currently at a crossroads, with both positive and negative forces. A rise above NIS 3.75/$ will draw more dollar buyers into the market, and the shekel-dollar rate will climb towards NIS 3.77/$ and above. On the other hand, a decline below NIS 3.68/$ could accelerate the drop towards NIS 3.64/$.
Published by Globes [online], Israel business news - www.globes-online.com - on October 20, 2014
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