12:48
Reported

News Briefs

  Elul 20, 5769 , 09/09/09

Fischer Resumes Dollar Buying Binge

The Bank of Israel, headed by Governor Stanley Fischer, surprised speculators on Tuesday and bought nearly $1 billion in U.S. dollars in an effort to shore up the shekel-dollar rate, which had touched below 3.75. After the buying binge, the rate climbed to nearly NIS 3.80 and now is at the NIS 3.787 level. A low rate lowers the costs of imports for consumers but also lowers profits of exporters who receive money in dollars.

Trading in the shekel and dollar has developed into a tug-of-war between Fischer, trying to keep the rate high, and speculators, who are trying to drive it down the point that Fischer will give up, a concession that would push the shekel-dollar through the floor. It reached below NIS 3.25 last year before Fischer initiated a massive dollar purchase program that officially ended several months ago.

Other archived news briefs:Sep 09 2009, 12:48 PM, 9/9/2009