FXCM Israel: The shekel could even weaken as far as NIS 3.95/$ due to US uncertainty.
The shekel continued to weaken against the dollar and the euro in morning inter-bank trading today. The shekel-dollar exchange rate is currently up 0.2%, compared with yesterday's representative rate, at NIS 3.862/$, and the shekel-euro exchange rate is up 0.6% to NIS 5.024/€.
In international markets, the dollar is weakening 0.26% against the euro at $1.301/€.
FXCM Israel's research department believes that we are at the start of a process in which the shekel will weaken against the dollar and lead to an exchange rate of as high as NIS 3.95/$. According to FXCM Israel, the shekel is especially weak and the dollar is seen as a safe haven during the domestic currency's time of distress. FXCM Israel said, "With financial reports in the US continuing to disappoint and tension over the US elections rising will cause demand for the dollar worldwide to strengthen. This is resulting in its strengthening against the shekel."
FXCM Israel adds that the shekel dollar rate will move up to between NIS 3.885/$ and NIS 3.929/$ but could also continue as high as NIS 3.95/$.
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2012
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