The shekel has strengthened slightly against the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate has fallen 0.12%, compared with yesterday's representative rate, to NIS 3.489/$, and the shekel-euro exchange rate has fallen 0.12% to NIS 4.726/€.
In international markets, the dollar is traded at $1.355/€ against the euro.
FXCM Israel says this morning, "Movement above NIS 3.50/$ or movement below NIS 3.475/$ could create momentum up or down. In international markets, the dollar weakened with the opening of the trading week, but volatility was low because there was no trading in the US, due to Martin Luther King Day. Since the beginning of the year, the dollar has been strengthening in international markets, due to the improving US economic figures and growing assessments that the Fed will taper quantitative easing as planned. The rest of this week's economic calendar in the US is thin, and the reporting season will set the tone.
"For now, the season has opened on a positive note, but stocks are struggling to create momentum for another rally, indicating that prices are beginning to be too high. Continued stagnation in the stock market should also help strengthen the dollar. In the local market, the strengthening of the dollar in international markets should send the shekel-dollar exchange rate higher, but the shekel is staying strong against the dollar, even in comparison with other currencies."
Published by Globes [online], Israel business news - www.globes-online.com - on January 21, 2014
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