Union Bank economists see a resistance point for the shekel-dollar rate at NIS 4.24/$, and the nearest support level at NIS 4.0126.
Options trading is pointing to a drop of 0.43% in the shekel-dollar exchange rate to NIS 4.142/$ and to an increase of 1.43% in the shekel-euro exchange to NIS 5.3125/€. There is no inter-bank foreign currency trading on Sundays.
Economists at Union Bank expect that Governor of the Bank of Israel Prof. Stanley Fischer will lower the interest rate this week by 25-50 basis points. The economists find that last week's report of the negative change in the Consumer Price Index (CPI) allows Fischer to continue to lower the interest rate. At the same time, the Bank of Israel plan to buy government bonds, and the sharp rise in the shekel-dollar exchange rate that followed the report of that plan, can limit the cut in the interest rate.
Union Bank economists see a resistance point for the shekel-dollar rate at NIS 4.24/$, and the nearest support level at NIS 4.0126.
On Friday, the representative shekel-dollar exchange rate was set 0.897% higher at 4.16, and the representative shekel-euro exchange rate was set 0.272% higher at NIS 5.2376/€.
Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2009
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