Atrade: If the Bank of Israel does not take drastic action, the shekel-dollar exchange rate will fall to NIS 3.40/$.
The Bank of Israel reportedly bought of tens of millions of dollars in its latest intervention in the market today, but failed to weaken the shekel. The shekel is flat against the dollar and euro in afternoon inter-bank trading, at NIS 3.488/$ against the dollar and NIS 4.768/€ against the euro.
Last week, the Bank of Israel bought $500 million, but the intervention did not affect the shekel-dollar exchange rate. There is still talk about setting a shekel-dollar exchange rate floor, but the Bank of Israel opposes the idea.
Atrade says today, "If the Bank of Israel does not take drastic action, the shekel-dollar exchange rate will fall to NIS 3.40/$. In the absence of important macroeconomic figures, foreign investors are struggling to find a clear direction in trading. So long as the shekel-dollar exchange rate is below $3.50/$, the shekel will continue to strengthen."
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2014
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