The shekel-dollar rate has risen in morning interbank trading, after trading in foreign currency options yesterday reflected a 0.4% increase to NIS 3.534/$.
The shekel-dollar rate rose 3.5% over last week, with Friday's closing representative rate set at NIS 3.519/$.
It is believed that last Monday's interest rate cut by Governor of the Bank of Israel Stanley Fischer, which narrowed the gap between the shekel and dollar interest rates will be followed by further cuts in line with similar moves by the US Federal Reserve Board.
The shekel-dollar rate has risen 0.97% so far today, to NIS 3.553/$, while the shekel-euro rate has risen 1.1%, to NIS 5.6137/€.
Online foreign currency broker Easy Forex says the increase in the US personal consumption expenditure index, a key gauge of inflation, was in line with expectations, which shows that US inflation is still under control. Easy Forex believes this will increase the likelihood of the Fed making a further interest rate cut in April. The Chicago Purchasing Managers Index for February is due to be published today.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2008
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