The shekel strengthened at the opening of inter-bank foreign exchange trading this morning, after weakening on Friday. The shekel-dollar exchange rate is at it slowest for almost three months. The shekel is currently at 4.112 against the US dollar, 0.28% below Friday's representative rate of 4.124. The rate against the euro has fallen 0.35% from Friday's representative rate of 5.6324, to 5.612.
The fall in the shekel-dollar rate is greater than that indicated in yesterday's currency options trading.
According to broker Easy Forex, the next support level for the shekel-dollar rate is 4.1.
Finotec comments that the shekel is supported by the recent rise in interest rates the Bank of Israel raised its key lending rate to 4% last week and by strong economic performance. "The strong growth, at the impressive rate of 6% annually, a rapid rise in employment, a rise in the current account surplus, and rising inward investment that led to a rise of over $500 million in Israel's foreign currency reserves in August to $28.835 billion, lead investors to believe in the shekel, which could even strengthen to around 4/$," Finotec's survey says.
Published by Globes [online], Israel business news - www.globes.co.il - on September 3, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007