Subscribe to Print Edition | Sat., July 12, 2008 Tamuz 9, 5768 | | Israel Time: 05:41 (EST+7) web haaretz.com   Back to Homepage Rosner's Domain Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Peres Conference Business Real Estate Easy Start Travel Week's End Anglo File

Last update - 10:02 11/07/2008 Dollar up to NIS 3.378, day after BOI decides to buy $100m daily By Moti Bassok, Yuval Maoz and Ora Coren Tags: dollar, shekel The Bank of Israel shocked foreign currency markets into an about-face at 2:30 P.M. Thursday, moments after it announced it would be increasing its daily dollar purchases to $100 million a day, up from $25 million. The dollar rose 5% against the shekel within minutes of the announcement. Meanwhile, the central bank bought $100 million Thursday. Before the surprise announcement, the dollar was falling sharply against the shekel and had lost 0.9% to NIS 3.201, its lowest level in 12 years. Within a minute of the announcement it was up 5 agorot, and continued rising. Yesterday's representative rate was finally set at NIS 3.314, up 2.6% from the previous day. Advertisement Advertisement Later, in interbank trading, the dollar continued its rise, reaching NIS 3.365, another 2.4% gain. The euro also climbed against the shekel by 2.6%, to a representative rate of NIS 5.206. The dollar was up 0.1% against the euro in world trading yesterday. The heavy pressure on governor Stanley Fischer to intervene in foreign currency trading came from both economic and political circles. Fischer informed Prime Minister Ehud Olmert and Finance Minister Roni Bar-On of his decision shortly before announcing it officially. Both gave the move their blessing. In any case, the official explanation was that the central bank was increasing its foreign reserves, as it had previously announced. The actual short, terse official announcement stated: "The Bank of Israel announced that as of today, it will increase the average daily rate of foreign currency purchases to $100 million - as part of the program announced on March 20, 2008 to increase the level of foreign exchange reserves to $35-40 billion. The Bank of Israel explained that the decision to increase the pace of purchases was taken in light of current market conditions, and the cumulative and rapid change in the exchange rate of the shekel. The Bank of Israel will continue to review the program from time to time to take into account changing market conditions." Fischer had spent last week overseas on vacation and only returned to Israel early Thursday morning. A few hours later, he gathered the bank's senior management for a meeting in Tel Aviv to discuss how to halt the shekel's continued rise, and the damage it was causing. The forum decided not to wait any longer, and to act now. Bookmark to del.icio.us   Photoshopped launch Did Iran doctor an image of its provocative missile test launch? 'Hitler was a good boss' Nazi bodyguard describes the fuhrer's last moments in a Berlin bunker.   1.   Bad move - Drop the US dollar 10:54  |  Mordechai Hepple 11/07/08   2.   Mordechai Hepple #1 you asking us to drop the $? 11:47  |  S 11/07/08   3.   6 billion dollars in aid every year 12:01  |  taxpayer 11/07/08   4.   What do we get back? 15:15  |  Heschil 11/07/08   5.   THANK YOU ISRAEL FOR KEEPING WHAT BUSH CURSED THE US BY HIS HAND 16:30  |  glenna 11/07/08   6.   THANKS CENTRAL BANK, SMART MOVE. 01:29  |  PETRA 12/07/08

Read & React Did Iran doctor an image of its missile test launch? Responses: 171 Hitler's bodyguard: The Fuhrer was a good boss Responses: 131 PM suspected of asking various bodies to fund same foreign trips Responses: 54 Ari Shavit: The real problem is America Responses: 109 H.A. Hellyer: Who speaks for Europe's Muslims? Responses: 51 Rosner's Domain Did Mossad chief Meir Dagan pay a visit to the White House? (WTR) Is the Arab love affair with Obama over? (WTR) On Iraq, Obama draws to the ground of reality Poll: The more religious the Jewish voter, the more pro-McCain More Headlines 04:24 Two seriously wounded in Jerusalem shooting attack 04:05 Olmert suspected of defrauding state, charities to fund trips abroad 03:49 NRP Chairman: In a civilized country, Olmert would have resigned long ago 03:52 Olmert, Zaken, and Rishon Tours: A case of deja vu 04:47 Ron Arad's daughter: You can't declare him dead with no information 23:28 For Jewish American soldiers in Iraq, there is a different kind of service 01:02 Former U.S. diplomat gets year in prison for anti-Arab comments 04:00 Arab state tells Israel it would not oppose Iran strike 05:16 4 Israelis arrested for allegedly selling weapons to Palestinians 05:25 Six people killed in separate car accidents overnight 05:31 Lebanon forms unity gov't which gives Hezbollah veto power 21:16 IDF raids undermine my administration, Palestinian PM tells U.S. 03:53 Senior Iranian Ayatollah: Our missiles neither threat nor fake 20:57 Israel denies reports of IAF training in U.S.-controlled Iraq Previous Editions Select Day 11 jul 10 jul 09 jul 08 jul 07 jul 06 jul 04 jul 03 jul 02 jul 01 jul 30 jun 29 jun

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