Shekel stable against dollar

FXCM: Only the Bank of Israel has enough reserves to affect trading, and we may see it intervene if the shekel-dollar exchange rate falls below NIS 3.50/$.

The shekel has strengthened against the dollar, but weakened against the euro in morning inter-bank trading. The shekel-dollar exchange rate has fallen 0.05%, compared with yesterday's representative rate, to NIS 3.529/$, but the shekel-euro exchange rate has risen 0.17% to NIS 4.748/€.

On Wednesday, the Bank of Israel set the shekel-dollar exchange rate at NIS 3.531/$, down 0.08% on the day before, and set the shekel-euro representative exchange rate at NIS 4.74/€, up 0.13%.

In international markets, the dollar has strengthened 0.15% against the euro to $1.347/€, strengthened 0.1% against the pound to $1.604/£, and strengthened 0.35% against the yen to ¥99.60/$.

On Wednesday, the Ministry of Finance made a $125 million hedge deal in an effort to weaken the shekel and support exports. The ministry has made $1 billion in hedge deals in the past few months.

FXCM Israel says today that the Ministry of Finance's hedges are too small to affect the foreign currency market. "Only the Bank of Israel has enough reserves to affect trading, and we may see it intervene if the shekel-dollar exchange rate falls below NIS 3.50/$."

Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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