Despite the continuing toll being taken by Operation Protective Edge, the shekel is strengthening in inter-bank trading this morning against the dollar and against the euro.
The shekel-dollar rate is down 0.13% at NIS 3.4065/$ and the shekel-euro rate is down 0.15% at NIS 4.5877/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.411/$, down 0.205% on Tuesday's rate, and set the shekel-euro representative exchange rate at NIS 4.594/€, down 0.328%.
FXCM Israel research department said, "The shekel-dollar exchange rate has fallen below the NIS 3.41/$ threshold and is again on the way to test the NIS 3.40/$ level after several failed attempts to break below it, which were thwarted by Bank of Israel intervention. Even if we see Bank of Israel intervention breaking below this level could expose us to NIS 3.38/$.
FXCM Israel added, "The euro is also continuing to plunge against the shekel due ot the tension between Russia and the West over the Malaysian airliner shot down over Ukraine. The euro is at an 8-month low against the dollar and the shekel-euro rate has fallen below NIS 4.6/€, to the lowest point since January 2011."
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2014
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