The shekel was virtually unchanged against the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate fell 0.02%, compared with yesterday's representative rate, to NIS 3.782/$, and the shekel-euro exchange rate fell 0.02% to NIS 4.941/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.783/$, down 0.71% on Tuesday's rate, and set the shekel-euro representative exchange rate unchanged at NIS 4.941/€.
In international markets, the dollar weakened by 0.1% against the euro and pound to $1.3058/€ and $1.6017/£, respectively, but strengthened 0.3% against the yen to ¥88.10/$.
Numerous analysts believe that European Central Bank President Mario Draghi will announce a 0.5% cut in the euro interest rate at 2:45 pm today, in view of the deteriorating economic conditions in the Eurozone. Analysts expect the Bank of England to keep its interest rate unchanged at today's announcement, and to continue the purchases of £375 million worth of bonds.
Atrade believes that if the ECB leaves the interest rate unchanged and Draghi says nothing about a future interest rate cut, the euro will continue to strengthen against other currencies, including against the shekel, given its tight correlation with the euro lately.
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2013
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