The shekel was weakening on foreign currency markets against both the dollar and euro after the strong gains of recent days. The US currency has depreciated 12% against the shekel since July 2012 and 4.4% since the start of 2013. Since the end of January the dollar has depreciated 3.6% against the shekel during a period that it has appreciated by 5% against the basket of major foreign currencies.
In morning inter-bank trading on foreign currency markets, the shekel-dollar exchange rate rose 0.39% in comparison with yesterday's representative rate, to NIS 3.632/$. The shekel-euro rate rose 0.42% to NIS 4.658/€.
Nevertheless, market analysts believe that the strengthening of the shekel will resume with the exchange rate falling below NIS 3.6/$ and the Bank of Israel eventually being forced to intervene and buy dollars, in order to help exporters by weakening the shekel. The last time that the shekel dollar rate fell below NIS 3.6/$ was in September 2011.
FXCM Israel's research department said yesterday, "The shekel will continue to star in the foreign currency and arena and set new records against both the dollar and the euro. A combination of economic, geo-political and global factors continues to support the appreciation of the shekel in the short term and the shekel is expected to continue to strengthen against both the dollar and the euro. The next targets are between NIS 3.55/$ and NIS 3.57/$. Only if the exchange rate can move above NIS 3.66/$ will the momentum have been changed.
Published by Globes [online], Israel business news - www.globes-online.com - on April 4, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013