Shekel stable as early elections cancelled

The shekel was flat in inter-bank trading this morning against both the dollar and euro.

8 May 12 11:55, Guy Katsovich

The shekel is flat in inter-bank trading today, the day after Prime Minister Benjamin Netanyahu struck a deal with Kadima chairman MK Shaul Mofaz to join the government, and cancelled the early elections scheduled for September 4. The shekel-dollar exchange rate fell 0.10% by midday, compared with yesterday's representative rate to NIS 3.80/$, and the shekel-euro exchange rate is down 0.16% to NIS 4.95/€.

DS Apex chief economist Alex Zabezhinsky said today, "Assuming that the deal is closed politically, this is good economic news. The issue of the deficit, which is due for handling, is good news for the bond market. It will be in better shape than two months ago, when the rising deficit threatened flooding the market with bond issues. The situation may even improve compared with yesterday, when the market expected a new coalition to be established following elections, and which would deal with the deficit."

Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012