The dollar is trading at NIS 4.61 against the shekel, 0.2% up from Monday's closing rate of NIS 4.6020. Traders said that the increase is due to acquisitions by local banks.
In their weekly reports, economic entities estimate that the dollar could rise to NIS 4.70, due to preferences for forex instruments rather than shekel instruments. Trading rooms report high supply of dollars in the range of NIS 4.60 to NIS 4.62.
One trader said that investors do not hurry to acquire dollars when it trades at NIS 4.60, but neither is there a rush to sell. The trader said that whoever is interested in acquiring dollars prefers to wait for the dollar to weaken. The trader said that this is what happened last Thursday, when the dollar dropped to NIS 4.57, which led to strong demand.
But on the other hand, continued the trader, many investors want to quickly make a big profit. The trader said that such investors sell dollars at NIS 4.60 to NIS 4.62, which explains why the dollar stops rising at these levels.