Increased dollar selling in the last hour is taking the dollar below NIS 4.5 to NIS 4.4950, or 0.5% below its representative rate. The drop is a 1.4% plunge for the dollar from its peak level of NIS 4.555 yesterday.

Dealing rooms are reporting the sellers are mostly export companies, local banks and speculators who are taking advantage of the high dollar rates and are converting the dollars for their daily expenses.

The dollar rose to NIS 4.555 during trade yesterday, but the rises moderated towards the end of the day after Klein announced he wasn't planning to hike the interest rate back up in the short term, and that he felt passing the budget will lead to a more steady foreign exchange market.

Klein's statements yesterday led to a sharp decrease in the dollar to NIS 4.48. This brought on a second wave of buys that pushed the exchange rate up to NIS 4.515. Ohad Marani, director-general at the Ministry of Finance also said this morning he felt the dollar climbs were no cause for concern.

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The dealing room at Excellence is reporting relatively steady morning trade, assessing the dollar would remain within the NIS 4.47 to NIS 4.55 range. Compared with the last few days the deviations from the standard have decreased.

Another parameter to have steadied this morning is the gap in the banks' buy/sell prices. Yesterday the gap reached about one agora, three times its average. The gap is now down to 0.5 of an agora.

Dealing rooms are also reporting the presence of foreign investors was barely evident in the recent days of devaluation.