Israel Battles Currency Speculators

Foreign currency traders at Barclays Capital (BCS) in Tel Aviv have been glued to their screens for the past week trying to cope with a sharp increase in trading volumes following the Bank of Israel's latest attempts to stem the rise of the shekel. Trading volume was running around $10 billion a day, more than twice the normal level. Spreads on shekel/dollar contracts widened substantially as the central bank changed its policy twice in the space of a week in an effort to dampen currency speculation.

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