The dollar crossed the NIS 4.60 psychological barrier this morning, just one week after hopping over the NIS 4.50 marker. The US currency is currently trading at NIS 4.602, up 0.4% from yesterday¿s representative exchange rate of NIS 4.583.
This exchange rate represents an 8.8% gain over the dollar exchange rate just before Bank of Israel governor David Klein chopped interest rates by a dramatic 2%. The dollar has gained 1.9% since the beginning of the week, amid a wave of demand spurred by Klein's comments to the press that an exchange rate of NIS 5 to the dollar would not faze him.
Kleinr ecently stated that Bank of Israel has no exchange rate target and would consider direct or indirect intervention only in the event that shekel devaluation led to price increases and affected inflation.
One dealer speculated that although the dollar will probably continue to strengthen, it may drop to the NIS 4.55 level before continuing its northward hike.