Dollar rises to NIS 4.76 after early profit taking

The dollar is rising 0.35% to NIS 4.76, after dipping to NIS 4.7320 right at the opening of Tuesday forex trade. Dealing rooms said that the banks are doing most of the purchasing.

Yesterday, the dollar representative exchange rate climbed to a record NIS 4.7440.

The currency market is awaiting the Friday publication of the January consumer price index. Economic entities anticipate a 0.8% climb, compared with estimates of a rise of 0.7% to 0.9%. A climb higher than this range could lead to weakening of the dollar against the shekel, due to the probablility of increased lending rates.

Bank of Israel Governor David Klein is now keeping mum after granting endless interviews when the dollar began rising to NIS 4.50.

The bank said economists are closely monitoring the development of inflation, and that the bank will not intervene as long as those developments do not warrant it. The bank said Klein won't act on a single price index, and that the bank examines long-term development.

Currency market sources estimate the dollar could continue rising to NIS 4.80, but dealers do note limited potential for devaluation. Dealers believe the dollar is nearing its peak level.

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