Israel’s Shekel Surges Most in Four Years After Bollinger BreakYaacov Benmeleh
The shekel jumped the most in almost four years after it broke through a technical level that triggered selling of the dollar.
Israel’s currency surged as much as 1.8 percent, the most since May 2011, before trading 1.3 percent stronger at 3.8475 against the greenback at 5:15 p.m. in Tel Aviv. The shekel has now gained 4.4 percent since touching a more than two-year low on Jan. 23 and was the fourth-best performer Thursday among 31 major currencies tracked by Bloomberg.
The lower Bollinger band on the shekel versus the dollar was at 3.8829 at the close on Wednesday. The bands, created by John Bollinger in the 1980s, use standard deviations to measure moving averages on either side of a security. The shekel appreciated 16 percent during a two-year rally that ended in July of last year when the Bank of Israel cut its benchmark lending rate to a record.
“One bank sold dollars after the other,” said Rony Gitlin, head of spot trading at Bank Leumi Le-Israel. by phone on Thursday. “The euro stopped weakening, the shekel passed the 3.88 trigger and then it kept going from there.”