Shekel weakens against dollar at opening

By TAL MOISE/GLOBES
September 12, 2011 11:10

The shekel is weakened against the dollar but strengthened strongly against the euro in morning inter-bank trading on Monday. The shekel-dollar exchange rate was up 0.52% compared with Friday's representative exchange rate to NIS 3.719/$, but the shekel-euro exchange rate was down 1.71% to NIS 5.041/$.

The crisis in the eurozone and the future of Greece continued to be the focus of attention, affecting sentiment in the foreign currency market as disagreements between EU leaders were liable to result in the cancellation of the second Greek bailout.

Bank Hapoalim believed that the shekel will continue be affected by developments on the TASE and international markets. It advised holding 10% of investment portfolios in foreign currency, spread between the euro, dollar, and pound sterling in order to reduce risk.

"It seems that domestic factors have increased pressure on the shekel: the slower economic growth, the social protest and its possible repercussions, the probably halt in interest rate hikes by the Bank of Israel, and even the possibility of an interest rate cut," said the bank.


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