The dollar fluctuated again today, though it proved its strength once again at the end of the session. The representative exchange rate was set at NIS 4.535, reflecting a 0.62% climb from yesterday, when it was NIS 4.507.
Dealers report demand from the business sector, local banks, speculators and foreign investors. They say political events are partly responsible for the rate hikes.
At the same time, dealers are also reporting a less jittery foreign currency market, which is reflected in lower turnover of $700 million to $800 million, decreased buy/sell gaps, narrower price range, and less deviation from the standard on dollar options.
Financial institutions predict the dollar will continue to fluctuate, amid a general trend of shekel devaluation. Analysts at Israel Discount Bank estimate a 4% to 5% devaluation in the shekel this year. The € has weakened against the shekel, and is currently selling for NIS 3.997, 0.6% below the representative rate.