The shekel-dollar rate continued to rise in interbank trading this morning. The trend is in line with the strengthening of the dollar worldwide, including against the euro, which weakened 0.23% to $1.584/€.
Trading in Tel Aviv is taking place against the backdrop of next Monday's interest rate decision by the Bank of Israel. In view of the inflationary threat, and in the wake of the Consumer Price Index (CPI) gain in March, Governor of the Bank of Israel Stanley Fischer is widely expected to leave the interest rate unchanged at 3.25%.
Globally, the dollar has strengthened against the euro, in the absence of any major macroeconomic data. Foreign currency dealers are bracing themselves for the upcoming interest rate decision by the US Federal Reserve on April 30, two days after the interest rate announcement in Israel.
The shekel-dollar rate rose 0.23% in morning trading to NIS 3.45/$, while the shekel-euro rate fell 1.16% NIS 5.4324/€. The shekel-dollar representative rate was set 0.75% lower yesterday at NIS 3.442/$, and the shekel-euro rate was set 0.38% lower at NIS 5.496/€.
Online foreign currency broker Easy Forex says disappointing macroeconomic data from Europe have helped the dollar strengthen worldwide. In contrast to the global trend, the shekel has strengthened against the greenback. Dollar-shekel trading has remained thinner than usual as dealers wait for the end of the Passover holiday and the interest rate announcement by the Bank of Israel on Monday. Most analysts covering trading in the dollar expect the central bank to leave the interest rate unchanged at 3.25%, two days before the next interest rate announcement by the Fed in the US.
The dollar has strengthened against most leading currencies. With no significant macroeconomic data from the US, foreign currency traders have been focusing on events in Europe. With data in the EU block somewhat disappointing, investors had no good reason to continue selling the dollar, which strengthened against the euro in response. This appears to have affected trading in the dollar against other leading currencies worldwide.
Published by Globes [online], Israel business news - www.globes-online.com - on April 24, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008