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The representative dollar rate was set at NIS 4.633, up 0.21% from yesterday. Since the rate was set the dollar has been sliding a little to NIS 4.629 continuing the fluctuation that typified foreign currency trading all day.

The exchange rate dropped to NIS 4.6050 at the beginning of the session, reversed direction and made it all the way to NIS 4.633, its representative rate.

Dealing rooms are reporting high volume dollar purchases by the business sector following the dollar's plunge to NIS 4.6050. Dealers attributed the opening drops to sales by local banks.

A rumor is circulating the foreign currency market of a major hedge deal in the several hundreds of millions dollars due in the next few days. The deal may hike the dollar rate, and could be the incentive for its current rise.

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Ilanot Batucha investment bank Gift estimates the dollar will in the short term trade between NIS 4.6050 and NIS 4.6503. An analyst at the bank says if the dollar passes its upper trendline, it may get as high NIS 4.6950.

Prico investment bank analysts say the dollar has strengthened due to activity in the business sector, which closed loans in weakened currencies (such as the Japanese yen) and following car importers acquisitions.

Prico estimates the dollar rate will range from NIS 4.56 to NIS 4.66.

Dealers generally estimate the dollar will tade from NIS 4.57 to NIS 4.63 in the short-term. "As long as no new information reaches the market, it seems the dollar will not exceed these limits," said one dealer. He believes that the fact the dollar climbed yesterday in spite of the conversions indicates the potential for shekel devaluation still exists.

Data from the Bank of Israel reveals turnover in the foreign currency market has dropped some in the beginning of the week, totaling $700 million on Monday. The drop followed a turnover of more than $2 billion last Thursday, an all time record.