Quiet day in currency trade: Shekel gains 0.15% to NIS 4.7930

Foreign currency trading opened this morning with the U.S. currency showing some weakness against the shekel and trading at NIS 4.7750. At this point demand hit the market and the rate began to climb slowly. The representative exchange rate was set at NIS 4.7930 ¿ a 0.15% drop from the representative rate set Friday of NIS 4.7990.

Dealing rooms reported average turnover as players were less nervous than in the past few days. Traders noted a great deal of demand at NIS 4.75. Investment bank Excellence estimated this morning that the dollar will trade at NIS 4.76 ¿ 4.81 for the next few days. It should be noted that the trading week is truncated by Memorial and Independence Day holidays.

Excellence adds that the dollar weakness in local trade comes against the backdrop of U.S. Secretary of State Colin Powell's talks with leaders in the region as well as Prime Minister Ariel Sharon's declaration of willingness to convene an international conference for the region with representatives of the Arab states and the Palestinians (without Arafat). On the other hand, continued conflict between Israel and European Union members could weaken the shekel against the dollar.