Today's currency trading is opening with heavy profit taking on expectations Bank of Israel governor David Klein will raise lending rates much sooner than the scheduled late-June announcement of the next monetary program. The shekel opened strong and traded at NIS 4.91 against the dollar as banks sold the greenback.
However, at such low levels there were buyers on the market, some from the business sector, and demand is now boosting the U.S. currency in local trade to NIS 4.9250, a 0.85% drop of yesterday's representative exchange rate of NIS 4.9680. Dealing rooms report most activity at this time is intra-bank.
The financial markets are waiting with bated breath for Klein's press conference, scheduled for 11:00 am local time. The conference was planned well in advance and is slated for comments on the Bank of Israel amendment. However, in light of recent events, the governor will focus on interest rates and the exchange rate.