Shekel-euro exchange rate dips below NIS 5/€

The rate fell below NIS 5/€ for the first time since 2003.

The shekel is continuing its sharp appreciation against leading currencies, breaking new thresholds. The shekel-euro exchange rate fell below NIS 5/€ and the shekel-dollar exchange rate is nearing NIS 3.50/$ in early morning foreign currency trading today.

The shekel-euro exchange rate is down 0.98% to NIS 4.992/€ and the shekel-dollar exchange rate is down 1.11% to NIS 3.51/$.

Yesterday's shekel-dollar representative exchange rate was set at NIS 3.554/$, down 1% on Tuesday, and the shekel-euro representative exchange rate was set at NIS 5.041/€, down 1.2%.

Clal Forex foreign currency analyst Ilan Danziger told "Globes", "Since the end of August, foreign currency trading in the dollar has been carried out at around NIS 3.55-3.65/$. The shekel-dollar exchange rate broke through the important NIS 3.55/$ support level because of the dollar's weakness in international markets. In every recent foreign currency move against the dollar, the shekel has moved less than other currencies, such as the euro and the pound. We will probably see an appreciation of the shekel against the dollar."

Easy Forex predicts that Federal Reserve Board Chairman Ben S. Bernanke's decision to leave the Fed interest rate unchanged at 2% might cause Governor of the Bank of Israel Prof. Stanley Fischer to raise the interest rate, because under conditions of uncertainty and crisis, currencies with high interest rates are losing value, while currencies with low interest rates are strengthening.

Published by Globes [online], Israel business news - www.globes-online.com - on September 17, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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