The shekel weakened against the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate rose 0.28%, compared with Monday's representative rate, to $3.757/$, and the shekel-euro exchange rate rose 0.04% to NIS 4.956/€.
The Bank of Israel did not set representative exchange yesterday, because of Christmas, the day after the unexpected announcement on Monday of an interest rate cut to 1.75% for January.
Prico Risk Management says that thin foreign currency trading in international markets could create volatility in the Israeli market. It adds that, even though Governor of the Bank of Israel Prof. Stanley Fischer said that close attention should be paid to the strong shekel, it does not expect the Bank of Israel to intervene in the market in the near future.
Atrade disagrees, saying that there will no substantial movement in the shekel-dollar exchange rate because of thin trading over the Christmas holiday. "Anyone expecting volatility will be disappointed," it said.
Published by Globes [online], Israel business news - www.globes-online.com - on December 26, 2012
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