The shekel-dollar rate continues to fall, contrary to the trend on world markets, where the dollar is strengthening in the wake of the killing of terrorist leader Osama Bin Laden by US forces.
The shekel-dollar rate is currently down 0.13% in comparison with yesterday's representative rate, at NIS 3.3905/$. The rate is at its lowest since July 2008. The shekel-euro rate is down 0.38%, at NIS 5.0178/€. On world markets, the dollar has strengthened to $1.4788/€.
Investment house Meitav writes in its weekly markets survey, "Apart from the exchange rate, almost all macro-economic factors support an interest rate rise. We therefore expect that the Bank of Israel will choose continuing monetary restraint next month and over the coming year. The decision on restraint will be influenced by market expectations about the interest rate, actual developments in inflation, and particularly by rents. The exchange rate will be a contrary factor."
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2011
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