Today's foreign currency trading opened with profit taking, as the dollar crossed the NIS 4.6 mark heading down. The dollar is currently trading at NIS 4.585, 0.7% off yesterday's representative exchange rate of NIS 4.619.

The dollar is now down 5 agorot from its all-time high of NIS 4.64, which it hit this week. Dealers note that most of the morning trading is intra-bank and they feel it is still too early to label the situation a sea change.

Prico Management, which specializes in foreign exchange, estimates the dollar could drop in the short term to a NIS 4.56 trendline. Breaking that psychological barrier could lead the dollar down to NIS 4.52 or even NIS 4.47. Prico points out however, that the shekel devaluation potential has not been exhausted and breaking through the NIS 4.64 ¿ 4.66 trendline on the way up could lead to devaluation of as much as NIS 4.7.

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