Turmoil on global markets following S&P's decision to downgrade the
US credit rating, and sharp falls on the TASE, all weighed heavily on
the shekel in inter-bank trading Monday morning. The shekel was down
0.62% against the US currency to NIS 3.542/$, and plunged 2.22% against
the euro to NIS 5.089/€.
As G-7 leaders pledge to restore
stability to global markets Bank of Bank of Jerusalem (TASE: JBNK)
believes that the dollar's potential to continue strengthening against
the shekel is limited, and is influenced by the political and economic
uncertainty and fear about growth on global markets.
The Bank of
Jerusalem believes that while the dollar may continue to strengthen in
the coming days, it is only a temporary strengthening that will end when
calm and optimism return to the markets. Bank of Jerusalem wrote in its
daily survey, "The dollar will reach a stronger resistance threshold at
NIS 3.55/$ and crossing it will be a serious obstacle, but we do not
rule out this happening."