The shekel-dollar exchange rate continued to fall at the start of the new foreign currency trading week this morning, continuing the trend of the last few weeks. The shekel-euro rate, on the other hand, rose in morning trading.
US Treasury Secretary Henry Paulson has been battling for several weeks to halt the dollar's continuing weakening against leading global currencies. Speaking last Thursday, ahead of the G20 Summit in South Africa, he said that the US economy would continue to grow and this would eventually be reflected in the dollar's exchange rate.
The shekel-dollar exchange rate fell 0.08% in morning trading to NIS 3.932/$. The shekel-euro exchange rate rose 0.36% to NIS 5.767/€. The shekel-dollar representative rate was set 0.02% higher on Friday at NIS 3.935/$, while the shekel-euro representative rate was set down 0.2% at NIS 5.7467/€.
Online foreign currency brokerage Finotec says that the Bank of Israel's review of economic developments in the second and third quarters noted the continuing expansion of the Israeli economy despite the slowdown in global economic growth and the sub-prime crisis in the US.
The report also noted the continuing improvement in the labor market. As for price levels, the shekel-dollar rate has helped hold inflation within the 1-3% target range. These positive data are likely to help the shekel strengthen further, lifting it higher than the NIS 3.90/$ level. The shekel-dollar rate has support at NIS 3.9180/$, and the closest resistance level is NIS 3.9450/$.
Published by Globes [online], Israel business news - www.globes.co.il - on November 19, 2007
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