The shekel has strengthened against the major currencies this morning. The shekel-dollar rate, which broke through the NIS 4/$ barrier yesterday, has retreated slightly, by 0.28% compared with yesterday’s representative rate, to NIS 4.0058/$ , while the shekel-euro rate continues to slide, and is down 0.95%, at NIS 4.328.
On world markets, the euro has weakened by about 0.4% against the US dollar, and is traded around $ 1.07/€, a 12-year low.
Meitav Dash chief economist Alex Zabezhinsky says in an interview with “Globes” that the Bank of Israel erred in lowering its interest rate to 0.1% for March. He says that bank’s Monetary Committee underestimates the risks in the real estate and corporate bond markets, and that the benefits of its decision do not justify the risks involved.
FXCM Israel says in its market review this morning, “Conditions still support an upward trend in the shekel-dollar pair and consolidation above the NIS 4/$ threshold. As long as it remains above NIS 3.97/$ , the likelihood of further rises is high. What made the pair to retreat was the halt in the dollar’s rise on global markets, which caused speculators in the local market to take profits. The dollar now has a following wind from the better than expected US employment report released on Friday, and the world dollar index is at a peak of 11.5. Several technical analysts argue that the dollar is over-bought, and that there is a strong likelihood of a correction. Nevertheless, we reiterate our view that market conditions support continued appreciation of the dollar and consolidation of the shekel-dollar rate above NIS 4/$ .”
Published by Globes [online], Israel business news – www.globes-online.com – on March 10, 2015
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