Shekel weaker against dollar as interest rate decision awaited

The Bank of Israel will announce the interest rate for October after today's close.

The shekel weakened against the dollar and flat against the euro in early inter-bank trading today. The shekel-dollar exchange rate is currently up 0.50%, compared with Friday's representative rate, at NIS 3.906/$, and the shekel-euro exchange rate is unchanged at NIS 5.063/€.

"The drop in the shekel-dollar exchange rate, which resulted in the present exchange rate at around NIS 3.90/$, could definitely continue, and the exchange rate's next target is NIS 3.83/$," says Forex Trading. "In the short term, we expect the euro, commodities, and stock markets to rise and the shekel to strengthen against the dollar."

The Bank of Israel will publish the interest rate for October after the market closes today. The current interest rate is 2.25%. The rise in the Consumer Price Index (CPI) for August, which the Central Bureau of Statistics announced in mid-September, sharply boosted the 12-month inflation rate to 1.9%, compared with the expected rate of 1.5%.

Published by Globes [online], Israel business news - - on September 24, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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