FXCM Israel: The Bank of Israel will intervene in foreign currency trading if the exchange rate falls below NIS 3.48/$.
The shekel was stable against the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate has fallen 0.09%, compared with yesterday's representative rate, to NIS 3.492/$ and the shekel-euro exchange rate has fallen 0.01% to NIS 4.805/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.495, down 0.23% on Monday's rate, the first time the representative rate was set below NIS 3.50/$ since August 2011. It set the shekel-euro representative exchange rate at NIS 4.805/€, down 0.03%.
FXCM Israel says this morning, "The shekel-dollar exchange rate is trying to stabilize above its lowest levels and the rate has not fallen as low as NIS 3.48/$ over the past day but has also not managed to climb above NIS 3.50/$ and the pressure remains very heavy. The Bank of Israel is still watching from the side but falling beneath a low point of NIS 3.48/$ might result in the bank intervening in trading in order to prevent the dangerous slump in the exchange rate."
Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2013
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