The shekel has weakened against the dollar but strengthened against the euro in morning inter-bank trading today. The shekel-dollar exchange rate rose 0.40%, compared with yesterday's representative rate, to NIS 3.67/$, but the shekel-euro exchange rate fell 0.33% to NIS 4.981/€.
In international markets, the dollar is traded at $1.348/€ against the euro and at ¥92.35/$ against the yen.
FXCM said today, "The slide in the shekel-dollar exchange rate that began the week has been stemmed, due to trends in the global market for both stocks and the dollar. It is quite clear that the strong rally in financial markets is nearing its end, especially since the reporting season, which pumps the bull market, essentially ended this week. This is a good time for profit taking, just like with any trend. When the flow of positive financials ends, the markets will again deal with other troubles, such as the debt-battered countries in the Eurozone and the US budget. This U-turn, if it happens, will affect the global foreign currency market."
Atrade predicts that the shekel will weaken against the dollar, as the dollar strengthens in international markets. It believes that the shekel-dollar exchange rate will continue to be around its 200-day moving average of NIS 3.71/$, and a break through this level will send the exchange rate to at least NIS 3.74/$. The shekel's weakening against the dollar could intensify, if the TASE continues to fall, or if tensions in the north escalate, driving investors out of the market.
