Today's foreign currency trading was calm against the backdrop of the March consumer price index published yesterday afternoon which rose 0.5%. Morning trade opened with the shekel up slightly from yesterday's representative exchange rate, at NIS 4.795 to the dollar. The trading range was narrow during the day at NIS 4.792 ¿ 4.8, and today's representative exchange rate was set at NIS 4.794, a small 0.02% rise .
This morning foreign exchange specialists Prico predicted a continued wide trading range with strong supply at NIS 4.80 ¿ 4.82 curbing shekel devaluation over the coming days. However, security events continue to moderate any revaluation potential.
Prico noted that the March consumer price index increase of 0.5%, the lower level of prior projections, supported dollar strength in late trading yesterday, although the aggregate Q1 CPI rise of 2.4% with an upper limit of the 2002 target at 3%, could support a Bank of Israel hike of interest rates.
Like the dollar, euro and currency basket trading was calm today and both ended the day up under 0.05%. The representative exchange rate for the basket of currencies was set at NIS 4.8391, 13.9% above the lower limit of the fluctuation band. The euro representative exchange rate was set at NIS 4.2209.