Union Bank does not expect the Bank of Israel to raise the interest rate at its next meeting.
The shekel appreciated 0.2% against the US in options trading this morning to NIS 4.116/$. The shekel depreciated 0.27% against the dollar to NIS 4.124/$ on Friday.
The shekel appreciated 1.2% against the dollar last week and 0.7% against the euro.
Union Bank predicts that the Bank of Israel will not raise the interest rate from its current 4% at its next meeting. Union Bank bases this assessment on likely changes in the shekel-dollar exchange rate over the coming month, the upcoming interest rate decision by the US Federal Reserve Board, and market developments.
Union Bank predicts that the shekel-dollar exchange rate will be NIS 4.10-4.176/$ this week. The closest support level is NIS 4.10/$ and the next level NIS 3.932/$ and the closest resistant level is NIS 4.176/$ and the next level is NIS 4.251/$.
Published by Globes [online], Israel business news - www.globes.co.il - on September 2, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007