FXCM Israel research department: Foreign investors are again flowing back to the shekel.
The shekel is again strengthening against the dollar and the euro in morning inter-bank trading today, as tensions over Syria continue to ease. After the shekel's strong gains yesterday, the shekel-dollar exchange rate has fallen 0.53%, compared with yesterday's representative rate, to NIS 3.585/$, and the shekel-euro exchange rate has fallen 0.45% to NIS 4.752/€.
FXCM Israel research department says this morning that foreign investors are again flowing back to the shekel."The attack on Syria has probably been put off until further notice after a brilliant diplomatic move by Russia and Syria. US President Barack Obama has had his image damaged by the Syria saga but for the global financial markets the Russian initiative has brought a sigh of relief, and following the diplomatic move we see a rise in the appetite for risk this week."
FXCM added, "The shekel-dollar exchange rate has already fallen by NIS 0.08 from last week's peak and is already testing the significant NIS 3.58/$ support level. Falling below this level will pave the way to a further fall to NIS 3.56/$ although in this region we will likely see a slowdown in the fall for technical reasons. It is possible that the Bank of Israel will again intervene in trading to moderate the exceptional rate of the fall of the exchange rate, which is again approaching its recent lows."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013