The euro is sharply weaker against the shekel, and other currencies, after an IMF official said the euro stabilization fund is a temporary, not long-term, solution. IMF director of the European department Marek Belka described the moves as "morphine which stabilizes the patient", and said that longer-term actions are also needed.
The shekel-dollar exchange rate is up 0.45% to NIS 3.7647/$, and the shekel-euro exchange rate is down 1.98% to NIS 4.7785/€.
The shekel-euro exchange rate is at its lowest level since October 27, 2008.
Yesterday's strong market rallies around the world weakened the dollar, after the EU and IMF said they will spend up to $1 billion to support the euro by helping weaker countries in the EU borrow money. Today, Asian stock markets are falling, and futures point to a lower Wall Street open.
Local foreign exchange players believe that the shekel will continue to follow global foreign exchange trends.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.748/$, 1.446% lower than its level on Friday, and set the shekel-euro representative exchange rate at NIS 4.8748/€, 0.077% lower than its level on Friday.
Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2010
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