In inter-bank foreign currency trading Wednesday the shekel continued to weaken against the dollar as the US currency gained ground against the world's major currencies. For the first time since June 2009, the shekel-dollar exchange rate pushed through the NIS 4/$ threshold.
In morning trading the shekel was up 0.37 percent compared with Tuesday's representative rate, to NIS 3.997/$, having briefly gone over NIS 4/$ at the opening, and the shekel-euro exchange rate was up 0.38% to NIS 4.911/€.
Looking ahead, ATRADE believes the shekel will bounce back. "Despite the expected strengthening of the dollar against the shekel we believe that the breakthrough won't carry on for many days after Bernanke hinted last night that he may launch an additional financial incentives plan, the positive momentum of the dollar will fade and the dollar will find it difficult to continue much above NIS 4/$."