Trading in this week's foreign currency market opened in the shadow of yesterday's suicide bombing in Jerusalem and this morning's shooting attack in Bnei Brak. At the start of trading, the shekel managed to gain a little on the dollar to trade at NIS 4.5850.

The turnaround was quick in coming, however, and the dollar quickly climbed over the NIS 4.6 psychological hurdle. The representative exchange rate was set at NIS 4.612, about 0.3% up from the previous representative rate. Since then, the dollar has continued to strengthen and is trading at NI 4.6162, 0.1% over today¿s representative rate.

Trading rooms reported the dollar's early slide was due to local banks selling goods, but the political events curtailed the slide. One trader told TheMarker "The market wants to take profits and that was clear yesterday during options trading as well." He said sellers were not so quick to act as violence escalates, while buyers were waiting to exploit profit taking.

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