The dollar is hovering around NIS 4.80 Monday morning as the Knesset gears up to vote on tax reform. The vote is the first of three, and the treasury hopes to get the bill through before parliament breaks for summer at month-end.

In any case, the dollar is 0.1% down from its representative rate of Friday, but it's a hefty 0.35% above the level derived from shekel-dollar options trade on Sunday. The options trade 'set' the exchange rate at NIS 4.785.

The shekel's weakening in options trade yesterday is based on the treasury's optimism that it can command a majority for the reform, which imposes tax on capital gains and on shekel-denominated investment vehicles. The proposal would improve the relative attraction of the dollar.

Dealers say that trade is dull and sporadic, consisting mostly of interbank transactions.