The shekel-dollar exchange rate rose 0.3% to NIS 3.60/$ in early morning inter-bank trading today, and the shekel-euro exchange rate rose 0.5% to NIS 5.375/€.
Yesterday's shekel-dollar representative exchange rate was set at NIS 3.595/$, up 0.64% on the day before, and the shekel-euro representative exchange rate was set at NIS 3.556/€, down 0.18% on the day before.
Foreign currency trading is taking place against the backdrop of the 2009 budget discussion by the cabinet. Proposals are veering between a defense-oriented budget and a welfare-oriented budget, and ministers will have to decide their tendency and what cuts to make.
Easy Forex says that if the shekel-dollar exchange rate breaks through the NIS 3.60/$ resistance level, it could reach NIS 3.67/$. The shekel-dollar exchange rate resumed its climb on Tuesday, after a time-out on Monday, to close at the edge of the NIS 3.60/$ resistance level. Despite some weakness in afternoon trading that sent the exchange rate down to NIS 3.585/$.
eTrader says that whereas until now the shekel-dollar exchange rate was affected by the dollar's level in international markets, the correlation is now much weaker. Since the Bank of Israel began its intervention in the foreign currency market, the shekel-dollar exchange rate has been less affected by trading on international markets. Governor of the Bank of Israel Prof. Stanley Fischer's intervention and how the dollar purchasing program will end is worrying many traders. Even if the shekel-dollar exchange rate rises, it will be hard to break through the NIS 3.60/$ resistance level. The market is now on its summer vacation, trading is thin, and volume low.
Published by Globes [online], Israel business news - www.globes-online.com - on August 13, 2008
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