Dollar slides back to NIS 4.47 in early afternoon - TheStreet

Foreign currency trading this morning has been very volatile. As trade opened, the dollar traded at NIS 4.44, which foreign banks exploited to buy tens of millions of dollars. Local banks jumped on the bandwagon, and the dollar climbed back up to NIS 4.5.

However, at that level, supply kicked in, and the collar is currently trading at NIS 4.4680, 0.45% off the representative exchange rate.

Trading rooms report lower turnover than recent average volumes, nonetheless amounting to about $1.3 billion. Average daily turnovers are $500-600 million in more usual times. The jump in volume accompanied the 2% interest rate cut and sharp climb in the exchange rate, which has led to the retooling of investment portfolios.

Traders also reported that trade is affected by this morning's incident in which terrorists infiltrated an IDF Gaza outpost and opened fire. The incident follows a period of relative calm and could affect foreign currency trade.

Four Israelis, one IDF officer and three soldiers were killed in the incident. The terrorists crossed into Israeli territory at about 5 am, encountering IDF soldiers. A gunfight ensued in which one of the terrorists was killed; the second terrorist was pursued and killed some distance from the original incident.