The shekel has strengthened against the dollar, but is flat against the euro, in morning inter-bank trading today. The shekel-dollar exchange rate has fallen 0.41%, compared with Friday’s representative rate, to NIS 3.562$, but the shekel-euro exchange rate has edged up 0.03% to NIS 4.73/€.
Atrade says that speculators are likely to exploit the uncertainty at the Bank of Israel to put more pressure on the shekel-dollar exchange rate. The Bank of Israel will try to prevent a loss of control and stem the appreciation of the shekel, which is harming the economy. “It is possible that the ongoing stagnation of the shekel-dollar exchange rate between NIS 3.56/$ and NIS 3.60/$ will break within days. Movement below NIS 3.55/$ could increase the pressure on the exchange rate. The expected pressure on the exchange rate, because of the dollar’s weakness in the world, will compel the next governor to intervene with full strength to ensure price stability,” it says. Read more at Globes.