The shekel-dollar pair has been catching up with the trend on the world foreign exchange markets at the end of last week. The shekel has weakened against the US dollar and strengthened against the euro this morning. The shekel-dollar exchange rate is currently up 1.15% in comparison with the latest representative rate (NIS 3.943/%, set last Thursday), at NIS 3.9886/$, and the shekel-euro rate is down 0.38% compared with the latest representative rate (NIS 4.2349), at NIS 4.2185/€.
No foreign exchange trading took place in Israel last Friday and no new representative rates were set, because of the Passover holiday.
FXCM Israel says in its market review this morning, "The shekel-dollar pair is again testing the region near NIS 4/$. The upward momentum in the exchange rate mainly derives from the momentum of the US dollar on world markets, where it has strengthened for two successive weeks after a period of correction. A rise above NIS 4/$could once more encourage the speculators to push the pair towards new peaks, with the first resistance level coming at NIS 4.02/$.
"However, given previous failures to make the breakthrough out of the current range, whether upwards or downwards, it is still not clear whether the market is ripe for a significant move. Despite the tepid economic data and the Federal Reserve's obscure rhetoric, the market still believes that the Federal Reserve will introduce a first interest rate hike in the course of this year, at a time when most other major central banks, as well as the Bank of Israel, are following an expansive monetary policy."
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2015
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