Globes: Shekel weakens against dollar
9 October 12 11:01–The shekel weakened against the dollar, but strengthened against the euro, in morning inter-bank trading today. The shekel-dollar exchange rate is up 0.29%, compared with Friday’s representative rate, to NIS 3.867/$, and the shekel-euro exchange rate is down 0.36% to NIS 4.999/€.
“If risk-adverse investors take over the market, and demand for the dollar as a safe asset increases, the shekel-dollar exchange rate can be expected to change direction and rise. In view of the sharp drop in the shekel-dollar exchange rate in recent weeks, a U-turn could be sharp, sending the exchange rate up to NIS 3.88-3.89/$,” says FXCM.
Leader Capital Markets says, “Israel did not publish economic data last week, due to the holidays, but global trends described here did not miss Israel. The stock market (and the corporate bond market) are showing optimism, the shekel is clearly appreciating, and yields on government bonds are weakening. This trend will probably continue in the near term, due to expectations of improvement in the current account (a small surplus is expected in 2013, because of natural gas production, a real depreciation of the shekel, and the start of full production by Intel’s new fab). In addition, Israeli macroeconomic data are positive and there are assessments that there is no room to cut the interest rate (partly because of the sharp increase in housing demand).”…Read More>>
