Dollar options are trading at NIS 4.53, 0.3% higher than the representative rate set Friday at NIS 4.515. Turnover remains at a moderate 8,000 options.
The dollar is strengthening amid the political escalation and Bank of Israel Governor David Klein's announcement to Ha'aretz he has no intentions of raising interest rates, even if inflation expectations exceed the target by 1%. In his interview Klein said the bank has no exchange rate target, and that he would not be shocked by a devaluation of up to NIS 5. Dealers are saying Nasdaq and TASE drops are among the reasons for the strengthening of the dollar.
Financial sources estimate the dollar will continue to strengthen this week. Analysts at Ilanot Batucha's Gift estimate the dollar will break the NIS 4.555 level, taking it higher towards NIS 4.61. They believe trade in the dollar will continue to fluctuate, with high deviations from the standard.
Meitav analysts also predict devaluation, and estimate the dollar will trade at NIS 4.5 to NIS 4.58 throughout the week.