The shekel has depreciated 0.36% against the dollar in inter-bank trading this morning, reaching NIS 4.677/$. The collapse of Industrial Development Bank of Israel is behind the slide. Meanwhile, the shekel appreciated 0.1% against the euro, reaching NIS 4.584/€.
Despite the shekel's depreciation against the dollar, which began in options trading yesterday, most market players and analysts believe the shekel-dollar exchange rate will be NIS 4.62-4.70/$ in the coming weeks.
The shekel-dollar exchange rate may be pressured toward the lower NIS 4.62/$ end of this range in the coming week. Another factor is that the shekel-dollar exchange rate is currently below a short-term declining gradient that is blocking it at NIS 4.67/$. Therefore, any movement above this level would warn of a possible upward reversal, while any movement above NIS 4.70/$ would be a second bullish sign.
This means that in the short-term, the shekel-dollar exchange rate range has been restricted to NIS 4.62-4.67/$, and must be monitored for any possible break through these levels. The shekel-dollar exchange rate support level will probably be NIS 4.62/$ in the coming days. However, time is a significant factor, and short-term pressures could change after a few days.
There is no trading today on Wall Street, due to the Labor Day holiday.
Published by Globes [online] - www.globes.co.il - on September 2, 2002