The shekel is flat against the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate rose 0.02%, compared with yesterday's representative rate, to NIS 3.723/$, but the shekel-euro exchange rate fell 0.08% to NIS 4.96/€.
In international markets, the dollar is traded at $1.334/€ against the euro.
FXCM Israel said today that while the Tel Aviv Stock Exchange (TASE) responded favorably to Tuesday's election results, the foreign currency market remains moribund, with the shekel traded against the dollar at around the support level of NIS 3.71/$. It remains to be seen whether the TASE rally will continue, or there will be a breather, since the election results has taken the option of a narrow right-wing government off the table. Although the nation has really voted for change, it is the change offered by Yair Lapid, not the one offered by Labor Party chairwoman MK Shelly Yachimovich, and a relief for the market, as Lapid supports the free market.
FXCM adds, however, "This positive sentiment was not enough in the foreign currency market to give the shekel a strong push and send the shekel-dollar exchange rate to a new low point. There has been little change in the dollar in international foreign currency markets, despite rallies on stock markets. We should now monitor technical developments in shekel-dollar trading, and the exchange rate will move within a narrow band of NIS 3.70-3.75/$, with no ability to move beyond it. If we see a breakthrough upwards, the next targets will be NIS 3.79/$, NIS 3.49/$, and NIS 3.875/$. A breakthrough downwards will send the shekel-dollar exchange rate to NIS 3.69/$."
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013