The shekel-dollar exchange rate has continued to rise this morning. The rate is currently up 1.95% on yesterday’s representative rate, at NIS 3.9415/$, a level not seen since July 15. The shekel-euro rate is up 2%, at NIS 5.6736/€.
The Bank of Israel’s massive intervention in the foreign exchange market, with dollar purchases estimated at $1.3 billion over the past two days, has succeeded in weakening the shekel against the dollar and other currencies. Since the Bank of Israel’s announcement on Monday that it was stepping up its intervention, the shekel-dollar exchange rate has risen 5%.
On world markets, the US dollar is mixed, strengthening slightly against the euro and sterling, but weakening against the yen.
Barclays Capital commented on the Bank of Israel's announcement of greater intervention that the strength of the shekel was driven by the economy rather than speculation, and that it expected this strength to persist.
Published by Globes [online], Israel business news - www.globes.co.il - on August 5, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009