Thursday, June 9, 2011

Bethel Finances: Shekel ends 7-day streak of gains against dollar

www.bethelfinance.com

The shekel weakened against the dollar after seven straight days of gains before the Shavuot holiday. The shekel-dollar exchange rate rose 0.35% in early inter-bank trading to NIS 3.3375/$, but the shekel-euro exchange rate fell 0.07% to NIS 4.93/€.

On Tuesday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.63/$, down 0.59% on the day before, and set the shekel-euro representative exchange rate at NIS 4.934/€, down 0.15%.

In international markets, the dollar weakened slightly to $1.462/€ and against the Japanese yen to ¥80.08/$.

Earlier this week, Governor of the Bank of Israel Prof. Stanley Fischer hinted that he believes that the shekel will continue to strengthen against the dollar in the long term.

On Shavuot eve, Minister of Industry, Trade and Labor Shalom Simhon asked Prime Minister Benjamin Netanyahu to convene a meeting to discuss the future of Israeli industry in the face of the strengthening shekel and consequent erosion of competitiveness. "The erosion in the dollar exchange rate has been on the agenda of Israeli industry for a long time. If this trend in exchange rates continues, we are liable to witness severe and long-term consequences on Israeli industry. The issue of exchange rates is critical to the future of many businesses in the country." He wants the government to consider measures for helping exporters.

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