Wednesday, July 13, 2011

Bethel Finances: Shekel strengthens amid volatile global markets

www.bethelfinance.com

After several days of falls, the shekel is strengthening against the dollar and euro in morning inter-bank trading today, amid volatile global markets, over the debt crises in Europe. The shekel-dollar exchange rate fell 0.46% to NIS 3.449/$ and the shekel-euro exchange rate fell 0.24% to NIS 4.831/€.

In the foreign currency market yesterday, the shekel-dollar representative exchange rate was set up 0.90% to NIS 3.465/$ and the shekel-euro representative exchange rate was set up 0.15% to NIS 4.844/€.

In international markets, the dollar strengthened against the euro to $1.40/€, but weakened against the Japanese yen to ¥79.54/$.

Yesterday, Merrill Lynch warned that the debt crisis in Italy had repercussions beyond the eurozone. Bond yields for Italian and Spanish government bonds soared, and new concerns were raised about insolvency by Greece. Fears were briefly alleviated when Italy succeeded in raising €6.75 billion in new bonds, amid rumors that the European Central Bank was one of the buyers. Later, however, Moody's Rating Services downgraded Ireland's government from Baa3 to Ba1 - junk bond status - with a "Negative" outlook.

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