FXCM Israel: Market sources believe the Bank of Israel has intervened in trading to stop the shekel's appreciation.
The shekel is again weakening in morning inter-bank trading against the dollar and against the euro. The shekel-dollar exchange rate is up 0.85% at NIS 3.779/$ compared with yesterday's representative rate, and the shekel-euro rate is up 0.15% at NIS 4.342/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.801% from Tuesday's rate at NIS 3.777/$, and the representative shekel-euro rate up 0.009 at 4.336/€.
FXCM Israel said this morning, "The shekel-dollar exchange rate continues to climb upwards with strong momentum and is testing the NIS 3.79/$ level due to intervention by the Bank of Israel, market sources believe, in trading this week, and better than expected macroeconomic data published in the US yesterday. The exceptional movement upwards by the dollar against the shekel yesterday, compared with global trends and the lack of volatility in shekel-dollar trading in the previous few days, probably stemmed from the intervention of the Bank of Israel which is trying to halt the sharp appreciation of the shekel in recent weeks and the risk posed to Israeli exporters."
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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