Prico: The dollar's weakness is due to the markets' uncertainty whether the US economy will recover from the financial crisis.
The shekel-dollar exchange rate is down 0.86% to NIS 3.339/$ in morning inter-bank trading today, its lowest level since July. The shekel's appreciation is in line with the dollar's weakness in international markets. The shekel-euro exchange rate has again dipped below NIS 5/€, after falling 0.62% to NIS 4.99/€.
Yesterday's shekel-dollar representative exchange rate was set at NIS 3.4.21$, up 0.56% on the day before. The shekel-euro representative exchange rate was set at NIS 5.02/€, down 0.11% on the day before.
Online foreign exchange traded Prico attributes the dollar's weakness in recent days to the markets' uncertainty as to whether the US economy will be able to recover from the financial market crisis. Federal Reserve Board Chairman Ben S. Bernanke told Congress yesterday that approval of the Wall Street bailout plan was an essential condition for a US economic recovery, which is weakening with the worsening of the financial crisis. He said that price stability was still the Fed's main target, but that an interest rate hike would only be possible when the economy recovers.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2008
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