The shekel is stable in inter-bank trading this afternoon against the dollar and strengthening against the euro. The shekel-dollar rate is up 0.09% at NIS 3.917/$ compared with yesterday’s representative rate, and the shekel-euro rate is down 0.38% at NIS 4.205/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.695% from Friday’s rate at NIS 3.913/$, and the representative shekel-euro rate down 0.182% at NIS 4.22/€.
FXCM Israel research department said in its market review this morning, “After moving upwards last week, the shekel-dollar rate has corrected downwards a little with the opening of the trading week towards NIS 3.90/$. However, it is now strengthening above the key psychological trading rate of NIS 3.90/$ and is trading in NIS 3.91-3.92/$ territory. This slight correction was expected but the fundamental picture is only in favor of the strengthening of the dollar on global markets, especially after it was published yesterday that the European Central Bank (ECB) plans another interest rate cut in December.”
“This report only makes tangible the policy gap between the US Federal Reserve and the ECB and indeed most central banks including the Bank of Israel. The Fed may raise interest rates in December due to the surprisingly good job figures published last Friday, which reshuffled the deck. Even if we do see any correction in the dollar in the coming few days, while US economic data continues to support a rate rise in December, the shekel-dollar rate is expected to continue climbing upwards. Moving above NIS 3.93/$ will pave the way to NIS 3.95/$.