The bank's economists see longer term dollar strength as the US economy recovers.
In its weekly market survey, Bank Leumi believes that, in the short term, trading on the Tel Aviv Stock Exchange (TASE) will be volatile, in view of global developments. However, in the long-term, the bank believes that market sentiment will be positive.
Bank Leumi believes that the dollar will again strengthen in the near term in international markets, and that the shekel-dollar exchange rate will be stable. The bank believes that the euro will probably weaken against the dollar as a consequence of the euro bloc stabilization plan.
The bank believes that the shekel's stability against the dollar will follow from the relative stability of the local market, supported by capital inflows. In the longer term, the dollar should strengthen as the US economy recovers.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2010
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