Foreign currency trade has been extremely volatile this morning, and the uncertain market conditions left banks quoting spreads as high as 3 agorot between buy and sell rates for the dollar.

The spread is is ten times higher than the usual difference between the rates.

The current rise in the shekel exchange rate began last night, with the television news broadcast reporting a 2% interest rate cut.

The trend continued early this morning as the dollar crossed the NIS 4.27 mark.

In the past hour however, the frenzy has abated and the dollar is trading in the NIS 4.33-4.34 range. This is nonetheless 1.4-16% above the representative exchange rate of NIS 4.272 set Thursday afternoon.