FXCM Israel: Expectations continue to grow that the US Fed will raise interest rates in December.
The dollar may be rising on world markets as expectations of a US Fed interest rate hike rise but the shekel is strengthening today against the dollar and stable against the euro. In morning inter-bank trading, the shekel was down 0.26% against the dollar from yesterday's representative rate at NIS 3.841/$, and was up 0.02% against the euro at NIS 4.188/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.052% from Friday's rate at NIS 3.85/$, and the representative shekel-euro rate was set up 0.007% at NIS 4.188/€.
FXCM Israel said in its morning survey, "The shekel-dollar exchange rate remains firm around the NIS 3.85/$ level against the backdrop of the dollar strengthening on world markets. The dollar index continues its positive momentum and is being traded at a nine month peak as expectations grow that the US Fed will raise the interest rate in December. Markets are currently pricing in a 78% chance of a December rate hike, the highest odds to date."
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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