The representative shekel-dollar exchange rate fell by 0.721% to NIS 3.993/$ today, but the shekel-euro exchange rate rose 0.998% to NIS 5.0919/€.
About a year ago, on November 23, the representative shekel-dollar rate was set close to its current level, at NIS 3.846/$, and dropped by July to a low of NIS 3.23/$, before moving back to its current level.
At the July rate of NIS 3.23/$, the shekel was worth $.309, and at its current level is worth $.2504.
Capital market sources believe that Governor of the Bank of Israel Prof. Stanley Fischer will cut the interest rate by 25 basis points today to 2.75% - the lowest level ever in the country's history. Investment houses predict that he will make another 25-basis point cut before the end of this year, meaning that 2009 will start with an interest rate of just 2.5%. According to other experts in the market, Fischer won't make the cut this week but will cut the interest rate by 50 basis points by next Monday, due to the difficult figures regarding lower expected growth and the sharp falls on the TASE.
Friday's shekel-dollar representative exchange rate was set at NIS 4.022/$, up 0.6% on the day before, and the shekel-euro representative exchange rate was set at NIS 5.0420/€, up 0.67%..
Online foreign exchange broker Prico predicts that, in the long term, the shekel will appreciate against the dollar to NIS 3.50/$ or even lower. However, in the short term, the shekel's depreciation against the dollar is not yet over because of concerns about likely economic shocks, the sought-after support for exports, worries about shock in the government bond market, the ramifications of the erosion in value of corporate bonds, and concern about exposure of Israeli financial institutions to international banks.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2008
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