The shekel is weakening this morning in inter-bank trading against the dollar and against the euro. The shekel-dollar rate is up 0.30% to NIS 3.785/$ and the shekel-euro rate is up 0.33% to NIS 4.178/€.
Yesterday, the Bank of Israel set the shekel dollar representative rate down 0.841% from Monday's rate at NIS 3.774/$, and the representative shekel-euro rate was set 1.203% lower, at NIS 4.164/€.
FXCM Israel research department said this morning, "After the collapse of the dollar against the shekel at the beginning of the week, the shekel-dollar exchange rate has stabilized and even recovered slightly to reach NIS 3.78/$. The exchange rate is again in the range of NIS 3.75-3.80 where it has been for most of June and July."
FXCM Israel added, "The event now awaited by the market is the US Fed's interest rate decision tonight. The Fed is not expected to raise the interest rate but the market is increasingly inclined to believe that it will raise the rate in September and if the Fed hints at this tonight, the dollar can be expected to strengthen. Raising interest will be an incentive for foreign investors to resume investing in dollar assets due to an expected rise in returns. The factor weighing on the dollar at the moment are concerns about the collapsing Chinese market and the drop in commodity prices as traders sell dollars for Japanese yen, which is seen as a safe haven.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2015
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