Despite today's reversal in the strengthening of the shekel, FXCM Israel sees the shekel reaching NIS 3.85/$.
The shekel is weakening against the dollar and strengthening against the euro in afternoon inter-bank trading today. The shekel-dollar exchange rate is up 0.36%, compared with yesterday's representative rate, to NIS 3.924/$, and the shekel-euro exchange rate is down 0.17% to NIS 5.079/€.
In international markets, the euro strengthened against the dollar to $1.299/$ after the dollar hit a fourth-month low against the euro last week.
The dollar has been weakening since the US Federal Reserve's decision last week to buy $40 billion of mortgage backed bonds each month.
FXCM Israel's research department said, "The dollar-shekel exchange rate trend is now clearly downwards and in the present conditions no change of direction is expected. The two currencies are expected to make their way further down to the region of NIS 3.85-3.86/$. Of course due to the sharpness of the measure brakes in the fall and corrections are expected but the direction is southwards.
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2012
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