Unexpected strength of the shekel against the dollar

In our editorial, writing forex up trying to find its readers new aspects of trading on the foreign exchange market. This includes zoom in on some emerging market currencies on the foreign exchange market. Called emerging currencies as well as exotic currencies, these currencies are closely monitored by investors want to do good business. There are still a few months, the Czech koruna and the Icelandic krona had the support of traders. Now they suffer the brunt of the risk aversion of investors because of the financial crisis
Today, I propose we focus on a currency called an emerging but who knows some stability in the foreign exchange market in recent years. This is the Israeli shekel. While all currencies are emerging in sharp fall on the Forex, the strength of the shekel is almost unexpected. While the dollar continues to strengthen, both with the motto of the euro currency as exotic as the Brazilian real. The shekel obviously not immune to this extensive movement since the dollar has risen more than 7% since the beginning of November face the shekel, which approach the dollar rate and the shekel at around 4 shekels in recent days.
However, compared to other currencies such as Hungary guilder and the South African rand which significantly lost ground since the beginning of facing the U.S. currency, the shekel has lost 3.2% over 2008. Better still, the shekel gained 18% against the dollar since 2005, making it one of the strongest currencies in the emerging world.

As a result of the dynamism of the Israeli economy, management copy displayed by the central bank, increased foreign exchange reserves and restructuring the bank since 2003, the shekel has strengthened the market foreign exchange so that a shekel Forex market has become increasingly attracting massive traders looking for opportunities.

Of course, even if Israeli banks have not contracted credit risk, the Israeli economy begins to feel the effects of global recession. For example, the index of consumer confidence reached its lowest level since 2003 and the Israelis expect a deteriorating labor market within six months. This led the government to revise downwards the forecasts for growth, which rose 5% to 4.7% for 2008.

However, the shekel continues brilliantly. This maintenance is mainly due to the repatriation of funds to Israel, a phenomenon that also benefits the dollar and the yen. Furthermore, the good management of the central bank has repeatedly hailed the foreign exchange reserves increased by 7% in one month, while most central banks are experiencing a fall in reserves and massive injections Cash also reassured investors. The rate cut which was conducted recently by the Israeli central bank, in the opinion of several experts, weakened the Israeli currency would be at a level much higher against the dollar otherwise.

Despite a weakening in the short term, most economists and many traders betting on the medium and long term on a rebound of the shekel in the foreign exchange market, as as the dollar and the euro ' weaken because of slower growth and budget deficits.