The shekel has weakened against the dollar, but strengthened against the euro in morning inter-bank trading today. The shekel-dollar exchange rate has risen 0.51%, compared with yesterday's representative rate, to NIS 3.562/$, but the shekel-euro exchange rate has fallen 0.24% to NIS 4.784/€.
FXCM Israel says today, "The shekel-dollar exchange rate is taking off, in line with the dollar's rise in international markets, after the minutes of the Fed meeting, published yesterday evening, revealed that it plans to begin tapering the monetary expansion in the coming months. The minutes state that Fed members believe that the current improvement in the economy will make it possible to reduce bond purchases within months. As a result, we saw a sharp rise in yields on T-bills."
FXCM, however, doubts that the Fed will announce a substantial tapering at its December meeting, even if November jobs figures indicate further improvement.
"After a longer period of treading water, yesterday's dramatic development at the Fed sent the shekel-dollar exchange rate to over NIS 3.56/$. Movement above the last high of NIS 3.572/$ could impart strong momentum to a more general upward movement, and the first target will be NIS 3.60/$."
Atrade believes that movement above NIS 3.57/$ will cause a further rise to NIS 3.60-3.65/$. "Only a breach of the important support level of NIS 3.50$ could cause a plunge toward NIS 3.45/$," it says today.
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2013
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