The shekel continues to appreciate against the dollar. The shekel-dollar rate fell another 0.4% today and the representative rate was set at NIS 3.974/$, an 8.5-year low.
The Bank of Israel reiterated its determination not to intervene in the foreign currency market, and, moreover, it sees no reason to get upset about developments in the shekel-dollar exchange rate, since it is part of a global trend in the dollar.
Governor of the Bank of Israel Prof. Stanley Fischer told the Knesset Finance Committee today that inflation would reach the 1-3% target by year-end. The statement tells investors that he does not intend to make aggressive cuts in the interest rate in an effort to stem the shekel’s appreciation.
Meanwhile, the leading Tel Aviv Stock Exchange (TASE) indices rose today, boosted by rising international markets. The dominant trend on the TASE in recent sessions has been falling real estate shares, led by Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK), which has fallen 12% in the week from its all-time high reached following the $7.3 billion IPO by its subsidiary, AFI Development plc (LSE:AFID). Africa-Israel has shed $850 million in market cap, mainly because AFI Development has fallen almost 10% since its IPO.
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2007
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