Shekel down to NIS 4.582/$

The shekel-euro exchange rate is NIS 4.98/€. Predictions are that Governor of the Bank of Israel David Klein will continue his modest interest rate cuts.

After several days of appreciating against the dollar, which lowered the shekel-dollar exchange rate to NIS 4.559/$, its lowest level since early 2002, the trend changed this morning with the beginning of this week’s inter-bank trading.

The shekel-dollar rate has risen 0.1% to NIS 4.582/$, compared with the most recent representative rate, and the shekel-euro rate is up 1.3% to NIS 4.98/€.

Compared with yesterday’s shekel-dollar rate in options trading, the shekel-dollar rate has risen 0.5%.

Market sources cite the elimination of the danger of an Iraqi attack as the main factor in the shekel appreciation in recent days.

Deal room traders are divided about the exchange rate trend. Some believe the shekel-dollar rate will reach NIS 4.50/$, whither others are of the opinion that it is worthwhile buying dollars at the current levels, and predict the exchange rate will return to this year’s high levels, if the economic plan is not passed, and a general strike is declared.

Published by Globes [online] - www.globes.co.il - on April 21, 2003

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