The shekel opened up 0.2% this morning to NIS 4.785 as the IDF pulled out of Nablus and Jenin. Nonetheless, uncertainly regarding the day after scenario and defense establishment fears of another wave of terror, are moderating shekel gains. Uncertainty regarding May Bank of Israel interest rates, yet to be determined, is also making it difficult for investors to make decisions.
Foreign currency specialists Prico International maintain their estimate that the U.S currency will trade locally on a wide range with large supply expected at NIS 4.80-4.82, primarily from the business sector. This supply will curb shekel devaluation potential and support the local currency.
Discount Bank notes that with the shekel-dollar exchange rate at its current level of about NIS 4.8, March's monthly devaluation rate was 2.5%, which can be expected to be evident in the next few monthly consumer price indices.