The shekel is strengthening against the euro and dollar in morning inter-bank trading today. The shekel-dollar exchange rate fell 0.27%, compared with yesterday's representative rate, to NIS 3.686/$, and the shekel-euro exchange rate fell 0.20% to NIS 4.99/€.
On international markets the dollar lost ground against the euro with the dollar-euro exchange rate up 0.24% at $1.354/€.
FXCM Israel research department said this morning, "The volatility in the market, which is also reflected in the jump in the VIX Volatility Index has increased demand for the dollar which is still seen as the surest and most stable asset. All signs show that we are reaching the end of the current market rally, which has pushed indices up since November to record levels, which haven't been seen since the financial crisis began. The euro is falling back against the dollar and some bodies expressed concern in recent days that the continued strengthening of the euro (trading at its highest levels against the greenback for more than a year) could harm the fragile recovery process of the Eurozone economies."
FXCM Israel added, "The dollar and shekel are being traded in high correlation to the dollar tend worldwide (mainly the dollar-euro) and the fact that the fall on Tuesday did not lead to a new low strengthens the chance that the bottom has been reached. The dollar-shekel volatility will continue along with the volatility in global trading. A rise above NIS 3.71/$ may indicate the beginning of a correction. A fall beneath NIS 3.67/$ will pave the way to a new low."
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2013
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