Dollar Down to NIS 3.69

The dollar fell by 0.6% against the shekel on Wednesday on the eve of the Sukkot holiday, and the dollar-shekel representative rate was set at 3.694. The shekel moved in the opposite direction against the euro, falling sharply by 1.3% to a representative rate of NIS 4.941.

The Bank of Israel bought dollars earlier this week, but was still unable to halt the shekel's climb against the dollar. But the local foreign currency market was really only following the lead of global forex traders, who sent the dollar plummeting against the euro as well as 13 out 16 other major currencies Wednesday after the U.S. Federal Reserve indicated it was open to reintroducing quantitative easing to tackle sluggish U.S. economic growth, disappointing - and confusing - U.S. investors.

The dollar recovered slightly against the euro Thursday, but this did not reflect confidence in the greenback, only weakness in Europe. Gold hit new records and neared $1,300 an ounce.

Harel Finance analysts forecast the dollar will be NIS 3.70 in six months, while Leader Capital Markets analysts predict the dollar will be NIS 3.60 in an another year.