Shekel stronger as dollar slips well below NIS 3.80/$

The shekel is strengthening this morning against the dollar but weakening against the euro. In morning inter-bank trading, the shekel was down 0.68% against the dollar from yesterday's representative rate at NIS 3.7821/$ and was up 0.10% against the euro at NIS 4.2597/€.

Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.079% today compared with Friday's rate at NIS 3.808/$, and the representative shekel-euro rate was set up 0.096% at NIS 4.255/€.

FXCM Israel said in its morning survey, "after three months in which the shekel-dollar exchange rate has been treading water in the NIS 3.80-3.90/$ trading band, the rate has broken below the bottom limit of the trading band and is heading beneath the low point of NIS 3.793/$, the lowest point since May 16. Due to the fact that the two currencies were locked for a protracted amount of time within the range, breaking below it may have major significance on a technical level and bring out many long traders with stop orders for this point. Due to the technical importance, the Bank of Israel may choose to intervene around these price levels in order to halt the negative slide of the dollar, as it has previously done around critical technical levels. The dollar is losing ground worldwide recently as well as in Israel due to a serious of US macroeconomic figures reflecting a slowdown in growth in the US economy in the third quarter, which is cooling expectations of a rate hike."

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2016

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