The shekel strengthened against the dollar, but weakened against the euro in Monday morning inter-bank trading. The shekel-dollar exchange rate was down 0.75 percent, compared with Friday's representative rate, to NIS 3.968/$, and the shekel-euro exchange rate was up 0.16% to NIS 5.076/€.

The Bank of Israel was due to publish Monday the minutes of the Monetary Committee's meeting last month, at which it decided to keep the interest rate for September unchanged at 2.25%. The minutes were expected to discuss the shape of the Israeli economy and the Bank of Israel's updated assessment about the crisis in Europe.

Later this week, the US Federal Reserve Board is due to announce its interest rate decision. Investors are waiting for Fed Chairman Ben S. Bernanke to announce whether he will launch a new stimulus plan for the US economy in the form of a new quantitative easing plan (QE3). The US interest rate was expected to be kept unchanged at 0-0.25%, in line with the Fed's policy to keep the interest rate at this level through 2014.