The shekel is stable against the dollar, but has strengthened against the euro in morning inter-bank trading today. The shekel-dollar exchange rate has edged up 0.04%, compared with Friday's representative rate, to NIS 3.505/$, but the shekel-euro exchange rate has fallen 0.33% to NIS 4.762/€.
Asian markets fell sharply today, after the publication of disappointing macroeconomic data in China. Futures contracts on leading London and New York stock exchanges point to stability at the opening.
FXCM Israel says this morning, "The shekel-dollar exchange rate is opening the first full trading week of 2014. Last week, the Bank of Israel intervened, after the shekel-dollar exchange rate fell to a new low of NIS 3.464/$, and its massive dollar purchases succeeded in boosting the exchange rate to the critical level of NIS 3.50/$. However, the question is whether this step will weaken the short sellers and drive a wider upward correction or whether, as with every trend, shekel buyers will simply exploit the opportunity given them by the Bank of Israel to trade in this pair of currencies at an attractive price.
"It should also be remembered that the Bank of Israel's intervention took place in a week of thin trading because of the New Year's holiday. The intervention's power was partly due to the low volumes and the absence of many large investors in the market."
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2014
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