The shekel strengthened against the dollar and euro in morning inter-bank trading today, amid talks of a possible ceasefire between Israel and Hamas in Gaza. The shekel-dollar exchange rate is down 0.42%, compared with yesterday's representative rate, to NIS 3.923/$, and the shekel-euro exchange rate is down 0.09% to NIS 5.026/€.
In international markets, the dollar strengthened by 0.2% against the euro to $1.2787/€, the dollar weakened by 0.2% against the yen to $81.24/¥, and was unchanged against the pound at $1.5904/£.
FXCM Israel believes that, in view of military developments, the shekel will stay strong against the dollar this week, but if the conflict escalates or if the IDF launches a ground incursion into Gaza, the shekel will weaken and the shekel-dollar exchange rate will rise toward NIS 4/$.
Atrade says, "The shekel-dollar exchange rate could fall to around NIS 3.90/$. The next resistance level is NIS 3.87/$, which is the 200-day moving average. If the IDF enters Gaza, a sharp rise in the exchange rate to around NIS 3.97/$ cannot be ruled out."
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2012
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