Shekel Down As Ceasefire Fails

YERUSHALAYIM (Hamodia Staff) -

The dollar-shekel exchange rate fluctuated with the Egyptian ceasefire proposal, fueling the shekel upward with news that a mutual de-escalation was anticipated Monday morning, and then sending it back downward after the initiative failed.

On Wednesday, the shekel had weakened in interbank trading against the dollar and but was slightly stronger against the euro, Globes reported.

The shekel-dollar rate was up to NIS 3.4137/$ and the shekel-euro rate was down 0.08% at NIS 4.626/€.

On Tuesday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.4050/$.

FXCM Israel Research Department said on Wednesday, “The strength of the shekel reflects the faith investors have in the Israeli economy and that’s despite the worsening security situation and the disruption to daily routine for most Israelis. Besides that the fall in the shekel-dollar exchange rate expresses the overwhelming advantage of short traders in the domestic foreign exchange market.”

FXCM added, “This is a speculators game and the balanced of power continues in favor of a falling exchange rate.”