The shekel has continued to strengthen against the dollar, but has weakened against the euro in morning inter-bank trading today. The shekel-dollar exchange rate has fallen 0.47%, compared with yesterday's representative rate, to NIS 3.61/$, but the shekel-euro exchange rate has risen 0.35% to NIS 4.831/€.
In international markets, the dollar has weakened 0.35% against the yen to ¥96.5/$, and weakened 0.34% against the euro $1.339/€.
FXCM Israel said today, "The ongoing weakness of the dollar against European currencies weighs on the shekel-dollar exchange rate, which is now testing the critical support level of NIS 3.60-3.61/$. Falling through this level could accelerate the fall in the exchange rate, and threaten to erase the entire rise in it. It will be interesting to see how the Bank of Israel will behave at the current exchange rate, and whether it will decide to again intervene. The daily threat of intervention is definitely a deterrent, but the slide in the dollar in international markets may tip the scales. Bottom line, we are still within the NIS 3.60-3.65/$ range, and a break through either of these levels could determine the next direction of the shekel-dollar exchange rate."
