The shekel is stable against the dollar in morning inter-bank trading, but is weakening against the euro, despite the debt crisis in Europe. The shekel-dollar exchange rate is down 0.15% to NIS 3.432/$, but the shekel-euro exchange rate is up 0.72% to NIS 4.874/€.
Yesterday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.437/$, down 0.81% on the day before, and set the shekel-euro representative exchange rate at NIS 4.839/€, down 0.1%.
In international markets, the dollar is trading at $1.42/€ against the euro and at ¥79.13/$ against the Japanese yen. Foreign currency trading is taking place following successful bond offerings by Italy and Spain is easing worries that Greece's debt crisis could spread to them.
Another factor is the deadlock in Washington over raising the US dept ceiling, currently at $14.3 trillion, and more warnings by Moody's of a possible sovereign debt downgrade and placing on the credit watch list.
"When many traders are negative about the shekel-dollar exchange rate, the euro is sensitive to a short squeeze, but the forecast for the shekel-euro exchange rate remains problematic because the European authorities have been unable to offer a sustainable solution to the sovereign debt problem," said GFT currency analyst Boris Schlossberg.
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