FXCM: Under the current global and local conditions, it seems to be just a matter of time before we see another collapse of the dollar.
The shekel has strengthened against the dollar, but weakened against the euro in morning inter-bank trading today. The shekel-dollar exchange rate has fallen 0.24%, compared with yesterday's representative rate, to NIS 3.511/$, but the shekel-euro exchange rate has risen 0.25% to NIS 4.852/€.
In international markets, the dollar is traded at $1.378/€ against the euro.
FXCM Israel said today, "The shekel-dollar exchange rate succeeded in staying above NIS 3.50/$ yesterday, because the dollar was stable in international markets, after its sharp fall following the publication of disappointing jobs figures on Tuesday. But under the current global and local conditions, it seems to be just a matter of time before we see another collapse of the dollar. The dollar is very vulnerable: the US economy is declining, the political system is paralyzed, and the market believes that the Fed will not begin tapering the quantitative easing before March 2014 at the earliest. Domestic factors in Israel, such as profits from gas, are weighing on the exchange rate."
Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013