The shekel is strengthening this morning in inter-bank trading against the dollar and against the euro. The shekel-dollar rate is down 0.49% at NIS 3.917/$ compared with yesterday’s representative rate, and the shekel-euro rate is down 0.75% at NIS 4.396/€.
Yesterday, the Bank of Israel set the shekel dollar representative rate down 0.329% from last Friday’s rate at NIS 3.936/$, and the representative shekel-euro rate was set up 0.641%, at NIS 4.429/€.
FXCM Israel said in its market review this morning, “The shekel-dollar exchange rate continues to tread water around 3.92-3.93/$ after it succeeded last week in breaking upwards and climbing to a peak of NIS 3.96/$. While the two currencies continue to trade above NIS 3.90/$ then the tendency is for the dollar to strengthen. However, the two currencies are currently undergoing a kind of correction after the recent rise in the rate. It seems that speculators, both worldwide and on the domestic market are hesitant on whether to push the dollar up. On the one hand, there are expectations that the US Federal Reserve will raise interest during 2015, but on the other hand, global risks, mainly concerning China, commodity prices and emerging markets are too high at the moment and may reshuffle the deck, and against this backdrop we see the exchange rate treading water.”