Shekel remains stable at NIS 4.765
The shekel failed to repeat its Wednesday rally against the dollar, with the representative exchange rate set at NIS 4.765 after volatile trade, a negligible 0.4% short of Wednesday's representative rate, NIS 4.767. After the exchange rate was set, the shekel traded at NIS 4.743 to NIS 4.745.
Investment bank Excellence this morning estimated that foreign currency trade will continue being largely affected by the security situation.
Israeli forces have been mounting counter-terror operations in the West Bank for the last 14 days. Hezbollah forces in Lebanon have been firing rockets on Israeli army posts and on Israel over the last two weeks, and there are growing concerns about the escalation along Israel's northern border.
Excellence economists estimate that the visit to Israel of U.S. Secretary of State Colin Powell, due to arrive tonight, is only boosting the shekel mildly, as market sources don't have high expectations from the visit, for instance a cease-fire.
Excellence noted NIS 4.725 as the technical support level, and NIS 4.785 as the resistance level.
The shekel also gained ground against European currencies. The shekel climbed against the basket of currencies to NIS 4.8081, 0.12% higher than Wednesday rate of exchange, and 13.3% above the lower limit of the mobility band. The shekel also gained ground against the euro to NIS 4.1913, up 0.17% from Wednesday.
