The U.S. dollar touched a three-year low against the shekel on Thursday as global sentiment about the greenback grows more bearish.
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The dollar dropped 0.2% to a Bank of Israel rate of 3.449, its lowest since August 2011 while the euro gained 0.13% to 4.805. In late trading, the dollar was trading at 3.439.
“It appears that the sentiment towards the dollar worldwide in at a deep low,” said currency trader FXCM. “Despite impressive employment figures released by the U.S. on Friday, the market simply doesn’t believe the U.S. Federal Reserve will raise interest rates in the foreseeable future.”
It said global trends support a continued deprecation of the dollar, putting the Bank of Israel in a difficult position as it tries to prevent a strong shekel for wreaking damage on Israel’s export sector.
“If the collapse of the dollar worldwide and against the shekel continues, the Bank of Israel will be forced to consider an additional interest rate cut,” FXCM predicted.