The dollar is trading at a new record high, NIS 4.656, 0.5% up from the representative exchange rate on Wednesday of NIS 4.6330. Traders said that there is demand by banks and local customers, while activity by foreigners is still mild.
The traders said that the dollar establishing itself at over NIS 4.63 indicates that shekel devaluation could continue. The traders said that the dollar has for several days been trading at NIS 4.57 to NIS 4.63, but that on Wednesday and this morning the dollar is trading higher.
In their reviews, most economic entities estimate that the dollar could continue rising to NIS 4.70 due to persistent regional fighting, and the sharp drops recently posted on American markets.
One trader said that the flow of capital movements continues to indicate that capital is exiting from Israel, as the demand for dollars increases. He estimates that this trend will continue in coming months.
The foreign exchange volume decreased at the beginning of the week, and came to less than $1 billion on average per day. Last Thursday the volume of dollar trade reached a record of over $2 billion cash.