The shekel has strengthened in morning inter-bank trading today. The shekel-dollar exchange rate has fallen 0.47%, compared with yesterday's representative rate, to NIS 3.602/$ and the shekel-euro exchange rate has fallen 0.17% to NIS 4.70/€.
In international markets, the dollar is traded at $1.303/€ against the euro.
Prico Risk Management and Investments Yossi Fraiman said, "Disappointing economic data published in the US helped weaken the dollar against leading currencies. But, in the local market, business sector activity and the supply of foreign currency by exporters continue to stem the surplus demand by energy companies. At this time, the shekel-dollar exchange rate is staying within a narrow band, and any movement below NIS 3.60/$ will push the Bank of Israel to intervene in foreign currency trading. We believe, especially in view the signs of a slowdown in Asia and Europe, that the Bank of Israel will seek to ease the effect of the exchange on exporters' terms of trade. In the short term, the shekel will be traded against the dollar between NIS 3.58/$ and NIS 3.66/$."
FXCM Israel said today, "After marking time for two weeks, since the Bank of Israel's intervention, the shekel-dollar exchange rate is again falling and is threatening to break through the key support level of NIS 3.60$. Although the Bank of Israel's intervention temporarily halted the slide, there was no real turn-around in the shekel-dollar exchange rate, and it has stayed below the NIS 3.65/$ resistance level. It now seems that movement below the NIS 3.60/$ level is inevitable."
Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2013
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