The Bank of Israel set today's shekel-dollar representative exchange rate at NIS 3.59/$, down 0.86% from Friday's rate. The shekel-euro representative exchange rate was set at NIS 5.103/€, down 0.1%.
The Central Bureau of Statistics will publish the Consumer Price Index (CPI) for August at 6:30 pm tonight. Market sources predict that the August CPI will rise by 0.5-0.8%.
The shekel's appreciation today belied the dollar's strength against leading currencies, with the exception of the Japanese yen. International foreign currency traders are gradually digesting this morning's news from the US financial industry.
Trading began this morning against the backdrop of the turmoil that has now engulfed the US financial sector and the latest developments there. In two dramatic announcements this morning, Lehman Brothers Holdings Inc. (NYSE: LEH), the fourth largest investment bank in the US, said it would file for bankruptcy protection, and Merrill Lynch & Co. Inc. (NYSE: MER) has agreed to be acquired by Bank of America Corporation (NYSE: BAC) for $50 billion, in the aftermath of the plunge in Merrill Lynch's share price last week.
Clal Forex noted that the shekel's recent depreciation against the dollar was less than other currencies, despite global dollar strength, which suggests that if the dollar begins to weaken in international markets, as happened on Friday and today, the shekel could appreciate quickly. Under such a scenario, Governor of the Bank of Israel Prof. Stanley Fischer may have to again intervene in the foreign currency market.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2008
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