The shekel is stable against the dollar and euro in inter-bank trading, after the shekel-dollar exchange rate fell below the NIS 3.40/$ threshold this morning. In afternoon trading the shekel dollar exchange rate was down 0.06% at NIS 3.414/$. The shekel-euro exchange rate was up 0.27% to NIS 4.916/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange at NIS 3.416/$, 1.24% less than the day before, and set the shekel-euro representative exchange rate at NIS 4.903/€, down 0.49%.
Foreign currency markets are waiting for today's decision by the US Federal Reserve, scheduled for 12:30 pm EDT. Most analysts expect Federal Reserve Board Chairman Ben S. Bernanke to keep the interest rate unchanged at 0-0.25%. At the subsequent press conference, capital market sources believe that Bernanke will explain how he will wind down the quantitative easing 2 plan (QE2) and he may also cut the Fed's growth forecast for the US for 2011, following cuts by Goldman Sachs and the leading rating agencies.
In international markets, the dollar strengthened against the euro to $1.437/€, even though the Greek government won a parliamentary no confidence vote, and the dollar is trading at ¥80.255/$ against the Japanese yen.
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2011
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