The foreign currency market continues to respond positively to early elections. The representative shekel-dollar rate dropped another 0.76% to NIS 4.701/$ today, completing a cumulative 1% shekel appreciation in two days. The shekel rose even more steeply in the morning to NIS 4.687/$, a 1.1% appreciation, but the rise later moderated.
The shekel-dollar rate is now at its lowest rate since the beginning of September. The rate has declined by NIS 0.16/$, a 3.3% appreciation since the beginning of October, and by NIS 0.20/$ within two months, a cumulative 4.1% shekel appreciation.
The banks, both local and foreign, led today’s foreign currency trading by selling dollars. Today’s trading volume was mediocre.
The dollar has traded between NIS 4.678/$ and NIS 4.774/$ in the past two days, a very wide NIS 0.087 range, amounting to 2%, reflecting a degree of nervousness in the markets.
The shekel also rose sharply against the other currencies, gaining 1.3% against the euro to NIS 4.6822/€, 1.34% against the Japanese yen to NIS 3.8402/100¥, and 1.1% against the pound sterling to NIS 7.3249/₤.
The local capital market also continues to respond favorably to early elections, rising sharply today, continuing the strong positive mood that began yesterday, when Prime Minister Ariel Sharon announced new elections.
As of 4:00 PM today, blue chip shares had posted rises of up to 3.4%, accompanied by an exceptionally large NIS 280 million turnover. The rise encompassed all sectors, led by the bank shares and the IDB group.
The bond market also posted large gains today. Shekel bonds were up 2%, repeating yesterday’s rises. Long-term Shahar bonds are already trading at 11.5% yields, compared with 12.5% only a week ago.
Published by Globes [online] - www.globes.co.il - on November 6, 2002