Israeli Shekel Holds Steady against Wobbly Dollar
|
|
|
 |
|
11.10.09, 11:09
/
Financial News
|
|
Two days after the Bank of Israel intervened in the Israeli market and acquired $150 million, Globes states that the shekel-dollar exchange rate is holding steady. The BoI’s intervention came after the exchange rate fell below NIS 3.73/$.
The dollar fell to a two-week low against the euro on international markets, following signs that the economic recovery is gaining momentum. The shekel-dollar exchange rate fell 0.02% in early inter-bank trading to NIS 3.733/$, however the shekel-euro exchange rate rose 0.28% to NIS 5.513/€.
On international markets, the dollar declined against 16 major currencies, including falling to a 14-month low against the Australian dollar.
Despite the stock market rally, the US dollar has been weakening since March. The dollar has fallen 7% against a basket of seven leading currencies since March.
A new "Bloomberg" survey predicts that the US Federal Reserve Board will start to raise the interest rate in the third quarter of 2010. According to leading Fed officials, the interest rate will remain near zero for a long time, a factor which is contributing to the dollar's weakness.
|
|
|
|
|
|
