Foreign currency trading today is very volatile. The dollar opened with a steady climb to NIS 4.74, where sellers hit the market, taking the dollar back down to NIS 4.715. Here however, demand reappeared and the dollar is now again trading up 1.55% at NIS 4.74.
This constitutes a seven agorot gain on its representative rate set Friday at NIS 4.667 and completing an 12% rise from its level on the day of the interest rate 2% cut. Dealers pinned the dollar gains in the past few hours on purchases by the banks.
Dealing rooms reported early trade mainly between the banks, as customers and speculators joined trading only recently. The word on the foreign currency market is one of the causes for the dollar climbs is cash influx into foreign currency mutual funds. Political escalations and the attack on the army base in the south do not help the shekel any.
Financial circles estimate the dollar may rise to NIS 4.8 in the short term, though dealers believe a correction may follow the rapid devaluation.