The shekel is strengthening against the dollar on Sunday, as dollar options trade at NIS 4.67, 0.65% or 3 agorot down from Friday's representative exchange rate, NIS 4.70.

Dollar options standards deviations continue to reflect a nervous market. The deviations in the March options series range between 12% and 13%. The standards deviations level is higher than that over three parallel months for the pound sterling (7%) or the euro (8.8%).

The currency market is awaiting the expiry of February dollar options on Monday, and the Bank of Israel announcement on key lending rates for March, also due Monday.

The market is divided about the interest rates. Some players expect 1% hike, others anticipate that interest rates will remain unchanged at 3.8%.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3