The shekel is strengthening against the dollar today while weakening against the euro even after the Bank of Israel intervened in trading this morning. The Bank of Israel purchased up to $200 million in foreign currency, according to one market trader. In early afternoon inter-bank trading, the shekel-dollar exchange rate was down 0.22% from yesterday's representative rate at NIS 3.702/$, and up 0.42% against the euro at 3.912/€ up from yesterday's 15-year low.
Earlier in the day, before the Bank of Israel intervened, the shekel was down some 0.6% against the dollar. On February 8, the Bank of Israel reported that Israel's foreign currency reserves had risen to $101.6 billion at the end of January, exceeding $100 billion for the first time ever, largely as a result of foreign currency purchases to weaken the shekel and assist exporters.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.081% compared with Tuesday's rate at NIS 3.71/$, and the representative shekel-euro rate was set down 0.287% at NIS 3.895/€.
FXCM Israel said in its daily review this morning, "The shekel-dollar exchange rate is trying to firm up above NIS 3.70/$ with low volatility on global foreign exchange markets. The fact that the two currencies have been around the key NIS 3.70/$ level for three straight days increases the technical likelihood that the rate has bottomed out at this level but this will only be confirmed if the rate moves up to NIS 3.72/$."
"The euro continues to be traded around the NIS 3.90/€ mark, its lowest level against the shekel since September 2001. As the French presidential elections in April move closer, continued polls showing a possible Le Pen victory, will weigh on the euro against the shekel and against the dollar."
Published by Globes [online], Israel business news - www.globes-online.com - on February 23, 2017
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