Union Bank sees the prolonged shekel strength affecting Israel's leading exporters.
This morning's shekel-dollar exchange rate options trading suggests little change in the exchange rate. The exchange rate was up just 0.03% to NIS 3.711/$ from Friday's representative rate of NIS 3.71/$. The shekel-dollar exchange rate rose 0.76% on Friday.
The shekel-euro exchange rate was down 0.25% to NIS 5.4489/€ from Friday's representative rate of NIS 5.4624/€. The shekel-euro exchange rate rose 1.02% on Friday.
"The volatility in the stock markets will continue over the coming weeks," says Union Bank in its weekly market survey. The bank adds that the dollar's weakness will probably affect the upcoming financial reports of leading Israeli exporters.
The bank says that the Federal Reserve Board's 75-basis point interest rate cut last week underscored fears that the US economy was in poor condition. The bank predicts that the shekel-dollar exchange rate will be traded between NIS 3.65/$ and NIS 3.74/$. The closest support level is NIS 3.65/$ and the closest resistance level is NIS 3.837/$.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2008
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