The shekel is strengthening against the dollar in early trading.
The shekel-dollar exchange rate is down 0.25% to NIS 3.6778/$, and the shekel-euro exchange rate is down 0.05% to NIS 5.2984/€.
The dollar is weaker against major currencies around the world as futures point to a higher open on Wall Street today, after yesterday's Martin Luther King Day holiday.
Tomorrow, the Bank of Israel will release its comprehensive state of the economy index, which should give an indication of the economic situation.
In 2010, the shekel has strengthened about 2.3% against the dollar, and the exchange rate is at a level last seen in December 2008. The Bank of Israel has bought about a billion dollars this month in a bid to slow or halt the slide in the exchange rate. However it appears that foreign investors, who remain bullish on the shekel, are selling dollars and buying shekels at a pace faster than the Bank of Israel is making its moves.
Economists at investment house Excellence Investments Ltd. (TASE: EXCE) believe that Governor of the Bank of Israel Prof. Stanley Fischer will continue to intervene and support the exchange rate. They also offer their target range at which the Bank of Israel will step in and buy dollars. "The exchange rate for intervention for the coming week is NIS 3.67-3.69/$."
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.687/$, 0.136% higher than the day before, and set the shekel-euro representative exchange rate at NIS 5.3012/€, 0.072% lower than the day before.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2010
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